SIPC: MF Global Agreements Should Result In 100 Percent Return Of Allowed Securities Customer Property
If Conditions Met and Agreements Approved by the Court, Trustee Anticipates Significant Additional Distributions to Commodities Customers Trading on US, Non-US Exchanges.
WASHINGTON, Dec. 28, 2012 /PRNewswire-USNewswire/ -- Between $500 million and $600 million dollars will be returned to the MF Global Inc. (MFGI) estate under an agreement announced by James W. Giddens, trustee for the Securities Investor Protection Act (SIPA) liquidation of MFGI, and Richard Heis, a joint administrator of MF Global UK Ltd. (MFGUK).
Separately, Giddens and the Chapter 11 Trustee for MF Global Holdings Ltd. (MFGH), Louis J. Freeh, announced that they will resolve all claims between their respective estates.
Once certain conditions are satisfied to make the agreements effective and if approved by the United States Bankruptcy Court for the Southern District of New York, Giddens anticipates the agreement between MFGI and MFGUK will result in 100 percent satisfaction of allowed securities customers' claims and significant additional distributions to commodities customers who traded on US and non-US exchanges.SIPC President Stephen Harbeck said: "These agreements are a major accomplishment that will benefit customers and creditors worldwide. Not only will the agreements with MFGH and MFGUK likely allow for the return of 100 percent of allowed securities customers claims, it will also result in significant distributions to be made to commodities customers. SIPC commends the efforts of Trustee Giddens, Mr. Heis and Mr. Freeh, whose work has yielded agreements in the best interests of all creditors that will minimize legal costs and allow for an expeditious resolution of all open matters." Harbeck added: "SIPC looks forward to continuing to work with the Trustee and other parties to make sure all conditions are met and the agreements are approved by the Court, so that the distributions of funds to customers can occur." Full details on the agreements can be found at mfglobaltrustee.com. ABOUT SIPC The Securities Investor Protection Corporation is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.
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