Bloomberg News

MF Global Trustee Freeh May Participate in U.K. Court Cases

June 26, 2012

MF Global Holdings Ltd. (MFGLQ:US) Chapter 11 trustee, Louis Freeh, was given the right by a London judge to participate in all U.K. court proceedings involving the failed brokerage.

Judge David Richards signed off on the application at a hearing today. Freeh has filed a London lawsuit against the administrators of the company’s U.K. unit seeking about $400 million from internal repurchase agreements used to move money around the company.

Legal disputes between multiple trustees winding up MF Global’s British and American entities have tied up about $1.1 billion of clients’ and creditors’ money, which can’t be returned until courts decide who controls the assets. MF Global filed the eighth-largest U.S. bankruptcy on Oct. 31 after getting margin calls for its bets on European debt.

A separate $700 million case between U.K. administrators KPMG LLP and the trustee of the MF Global U.S. brokerage unit over disputed assets is set to go ahead in London in April.

To contact the reporter on this story: Jeremy Hodges in London at jhodges17@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus