MF Global creditors set for earlier, fuller payment after agreement on disputed assets

MF Global UK creditors are set to receive an earlier, fuller repayment of assets from special administrator KPMG, after it settled a dispute with MF Global Inc, the US parent company, over assets held in the UK estate.

In the near term, secured creditors to the UK subsidiary may receive up to 60% of monies owed, while the settlement clears the way for the eventual return of up to 100% of assets, KPMG special administrator Richard Heis told Metal Bulletin on December 28.
KPMG said the agreement – under which it will return $500-600 million of the $2.5 billion in the UK estate to MF Global Inc – will allow creditors to be repaid more quickly, and to a fuller degree.
MF Global collapsed in October last year, as investors deserted the brokerage when it emerged that it had made massive bets on European sovereign debt.

While administrators in other jurisdictions have already returned substantial sums to creditors,...

Published

Mark Burton

December 28, 2012

16:45 GMT

London