Bloomberg News

MF Global U.K. Unit Has 4,500 Claims for $1.2 Billion, KPMG Says

January 08, 2012

Jan. 6 (Bloomberg) -- MF Global UK has 4,500 claims for about $1.2 billion in cash it has to distribute to clients of the failed broker-dealer, said KPMG, the administrator of the estate.

The U.K. unit of MF Global Holdings Ltd. is winding down under KPMG’s oversight. Applications for claims are still being evaluated, and some may be duplicates, Katie Hunt, a KPMG spokeswoman, said today in an e-mail. Clients and creditors must give written details of their claims by today to vote at a creditors’ meeting on Jan. 9, she said.

MF Global Holdings, once run by former New Jersey Governor and Goldman Sachs Group Inc. co-chairman Jon Corzine, filed the eighth-largest U.S. bankruptcy on Oct. 31 after a wrong-way $6.3 billion trade on its own behalf on bonds of some of Europe’s most indebted nations.

The parent company filed for Chapter 11 bankruptcy to apportion returns to creditors, including bondholders and lenders such as JPMorgan Chase & Co. Its U.S. brokerage, MF Global Inc., is winding down under trustee James Giddens, appointed under the Securities Investor Protection Act.

An estimated $1.2 billion is missing from MF Global’s segregated accounts, according to Giddens. In the U.K. proceeding, KPMG has said it’s seeking to return some money to the broker’s clients by March.

Giddens is in talks with KPMG as he tries to recover about $700 million from the U.K. unit to distribute to U.S. customers. He already has returned more than $4 billion to U.S. customers, leaving them short about 28 percent of their assets.

The brokerage case is Securities Investor Protection Corp. v. MF Global Inc., 11-02790, U.S. District Court, Southern District of New York (Manhattan). The parent’s bankruptcy case is MF Global Holdings Ltd., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Stephen Farr, Andrew Dunn

To contact the reporter on this story: Tiffany Kary in New York at tkary@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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