James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), the ill-fated brokerage that went insolvent in 2011, today obtained approval from the Bankruptcy Court, Honorable Judge Martin Glenn presiding, to make a final, cumulative 95% distribution on all non-affiliate, non-subordinated, allowed general unsecured creditor claims.
In addition, the Trustee and the Plan Administrator of MF Global Holdings Ltd. received approval for a Sale and Assumption Agreement between the two entities.
“The liquidation of MF Global Inc. is now essentially complete,” Giddens said. “The liquidation’s outcome – with customers and secured creditors completely satisfied and unsecured creditors receiving a near full recovery – was unimaginable when the proceeding began less than four years ago with revelations of a massive segregation failure.”
The Trustee has started the logistical planning needed to commence the final distribution promptly, and the Trustee anticipates to commence sending out checks immediately after Labor Day.
“Our extensive efforts to recover property, resolve complex claims, and seek approval for innovative motions to allow property to be returned more quickly were overwhelmingly successful,” Giddens continued.
“This outcome demonstrates the effectiveness of the Securities Investor Protection Act and the Bankruptcy Courts at handling even unprecedented failures of regulated broker-dealers and commodities firms. I appreciate the understanding of customers and others who were subjected to uncertainty and deprived of their property while novel and difficult issues were negotiated and resolved in the courts following the segregation failure that led to MFGI’s collapse.”
After the final unsecured creditors distribution is complete, the Trustee will have distributed over $8.1 billion to MFGI customers and creditors, including approximately:
- Customer claimants – $6.9 billion to cover 100 percent of allowed claims
- Secured, administrative and priority general claimants – $35 million to cover 100 percent of allowed claims
- Non-Affiliate unsecured general claimants – $219 million to cover 95 percent of allowed claims
- Affiliate unsecured general claimants – $905 million on their allowed non-subordinated unsecured claims
Six claims against MFGI, however, are still unresolved, and the Trustee has established a final unsecured claims reserve to account for those claims. After the remaining claims are resolved, the Trustee intends to close the MFGI estate, closing the liquidation proceedings.
The information in this statement does not apply to any other MF Global entity, including separate insolvency proceedings involving the parent company, MF Global Holdings Ltd.
To see the official announcement, click here.