March 5, 2013
Louis J. Freeh
, the Court appointed Chapter 11 Trustee of MF Global Holdings Ltd. ("Holdings Ltd."), is pleased to announce that JPMorgan Chase Bank, N.A., as Agent for the
revolving credit facility ("JPM") and the Creditor Co-Proponents of the Amended Joint Plan of Liquidation (the "Plan") have reached an agreement to modify the Plan to resolve the objections of JPM.
The settlement, reached through court ordered mediation, provides that the "Interco Settlement" in the Plan will be adjusted to include the subordination of
intercompany claim of Holdings Ltd. against MF Global Finance
Inc., to the lenders' claims under the approximately
revolving credit facility and a distribution of all recoveries under the plan on such subordinated claim to the lenders under the facility. The settlement will result in a slightly modified distribution range for unsecured creditors, which will be filed shortly with the Bankruptcy Court. Creditors have until
March 25, 2013
to vote on the Plan.
"The settlement is in the best interest of creditors as it removes a major hurdle to confirmation of the Plan. I applaud the efforts of the parties involved in resolving this dispute through mediation rather than litigation," noted Freeh.
The confirmation hearing is currently scheduled for
April 5, 2013
KCSA Strategic Communications212-896-1249 / 212-896-1216
SOURCE MF Global Holdings Ltd.