Bloomberg News

MF Global, Malev, Irish-Welsh Sea Ferry, Manroland: Bankruptcy

February 07, 2012

(This report contains items about companies both in bankruptcy and not in bankruptcy.)

Feb. 2 (Bloomberg) -- MF Global Holding Ltd.’s U.K. administrators plan to make the first payment to British clients of the failed brokerage, returning 26 cents on the dollar.

KPMG LLP, the administrators of MF Global’s U.K. unit, said the figure was the most it could return at this stage because of “continued uncertainty” as to who can claim a share of the so- called client money pool. The money will be returned to customers who had allowed claims for money in segregated, protected accounts, the firm said today in a statement on its website.

The administrators are to give a report to a London court tomorrow on their progress.

KPMG has been under pressure to start returning money frozen in U.K. customer accounts since MF Global collapsed into bankruptcy on Oct. 31 after making a $6.3 billion bet on European sovereign debt.

While KPMG has recovered about $912 million, or 90 percent, of money held in protected customer accounts at banks, exchanges and clearinghouses, it hasn’t yet returned anything to clients, the firm said in a report.

Hungary’s Malev Cedes Spending Control to Bankruptcy Trustee

Hungarian national airline Malev Zrt., weighed down by debts of 60 billion forint ($271 million), no longer has control over its own spending plans after a court appointed a bankruptcy trustee to oversee the company.

Outgoing payments must be approved by the state-owned, non- profit liquidator, Hungary’s Development Ministry said. The court also granted a moratorium stopping business partners from suspending Malev’s contracts and extending its aviation permits.

“The bankruptcy trustee will only approve payments that are needed for the continued and orderly operation of the airline,” the ministry said in a statement, adding that the moratorium provides “a security similar to bankruptcy protection.”

Malev has until tomorrow to submit a survival plan to the trustee or face being grounded. European nations are becoming reluctant to back carriers as the debt crisis forces cost cuts in other parts of the economy, with Spanair SA ceasing flights Jan. 27 after the Catalonia regional government halted funds.

Irish-Welsh Sea Ferry Service Closes as Fundraising Fails

The passenger ferry service between Ireland and Wales, owned by the West Cork Tourism Co-Operative Society Ltd., is being shut after failing to raise funds, the Co-op said today in a statement on its website.

The closing of the service from southern Ireland to Swansea in Wales will result in the loss of 78 jobs, according to the statement. The business will now be placed in receivership or liquidation, the Co-op said.

Manroland Said to Near Sale of Offenbach Site to Langley of U.K.

Manroland AG, the German printing-press maker that filed for insolvency protection in 2011, is in advanced negotiations to sell its Offenbach site to Langley Holdings Plc, two people familiar with the talks said.

The Offenbach site near Frankfurt is Manroland’s second- largest, with 750 employees remaining. The German company agreed to sell its web press unit in Augsburg in Bavaria, to L. Possehl & Co. last month.

Insolvency administrator Werner Schneider is still seeking a new owner for the facility in Plauen in eastern Germany, as he sells off the assets of the biggest maker of newspaper printing machines.

Langley, based in Retford in northeastern England, was established in 1975 by Tony Langley and operates in industrial applications such as welding technologies, uninterruptible power supply as well as goods and services to the construction industry. Tony Langley didn’t respond to telephone calls seeking comment.

Nyesa Seeks Protection From Creditors at Spanish Court

Nyesa Valores Corp SA, a Spanish real-estate developer, sought protection from creditors in court, the company said on Feb. 1.

The company is in “advanced” negotiations on a refinancing deal with its main creditors, which if successful “could mean the lifting of the state of insolvency that prompted the request for protection from creditors,” it said in a regulatory filing.

Ukraine’s Central Bank Decides to Liquidate Stolytsya Bank

Ukraine’s central bank will liquidate PAT Bank Stolytsya after the lender failed to restore financial stability following the 2008 global credit crisis.

The Natsionalnyi Bank Ukrainy appointed Evhen Kuno to supervise the liquidation process, according to a statement on the Kiev, Ukraine-based regulator’s website on Jan 31. The central bank took the decision a day earlier, it said.

Ukrainian banks were shaken by the global financial crisis, which dried up credit and weakened regional currencies. The former Soviet republic was forced to seek an International Monetary Fund bailout to support its financial industry.

Ukraine was in the process of liquidating 21 banks as of Dec. 29, according to central bank data.

--Kit Chellel in London, Edith Balazs in Budapest, Sheenagh Matthews in Frankfurt and Daryna Krasnolutska in Kiev. Editor: Christopher Scinta

To contact the reporter on this story: Erik Larson in London at

To contact the editor responsible for this story: Anthony Aarons at

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