Home Indiana Agriculture News New Proposal Would Return Most Money Back to MF Global Customers

New Proposal Would Return Most Money Back to MF Global Customers


MF Global Trustee Louis Freeh outlined an amended version of a plan to divide the company’s assets and distribute them among various creditor classes. Freeh projected MF Global’s U.S. broker-dealer unit could have up to a 120-million dollar surplus – which would mean full payback for traders whose money was frozen when MF Global went bankrupt in October of 2011. Still – Freeh said the broker-dealer unit could also end up with a 6-million dollar shortfall. That is small compared to the 1.6-billion dollar hole customers expected to face at the beginning of the case – but it is a less certain forecast from the payout plan version released last month.


Freeh’s newest proposal narrows recovery ranges for holders of the company’s 2.2-billion dollars in unsecured claims. Creditors now are expected to recover between 13.4 and 38.9-percent of claims. The new proposal also specifies JPMorgan Chase and Co will recover all of its nearly 7.8-million in secured setoff claims against MF Global units. The plan will go before a U.S. Bankruptcy Court Judge in Manhattan for approval on February 14th.


Source: NAFB News Service

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