NEW YORK, March 25, 2015 /PRNewswire-USNewswire/ -- James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York, Honorable Judge Martin Glenn presiding, seeking approval to make a second interim distribution of approximately $461 million on allowed unsecured general creditor claims, which would bring total distributions on those claims to 72 percent.
"This is another significant milestone in the MF Global Inc. liquidation as we continue winding down the estate," Giddens said. "When MF Global failed, the prospect of any general unsecured distribution was in doubt. I am pleased that today we are in a position where former customers and secured general claimants are fully satisfied and unsecured general creditors are now about to recover a substantial majority of their claims."
The Trustee's motion also seeks authorization to establish the second unsecured claims reserve and release funds from the reserves that are no longer needed. With this filing, the Trustee is fully protecting the MFGI estate and respecting the due process rights of all.
The Trustee is able to proceed with this second interim distribution due to substantial progress in resolving disputed general creditor claims. The Trustee will continue to diligently attempt to work through unresolved claims and other disputes. As additional claims are resolved, required reserves are further reduced, and potential recoveries are made through ongoing litigation, there is the prospect of additional distributions to allowed unsecured claimants at a future date.
This significant progress in the administration of the general estate follows the Trustee's full satisfaction of allowed customer, secured, administrative and priority claims, and a first interim distribution for allowed unsecured claims. Thus far, the Trustee has distributed:
- Customer claimants - $6.7 billion to cover 100% of allowed claims
- Secured, administrative and priority general claimants - $32.3 million to cover 100% of allowed claims
- Unsecured general claimants - $518.7 million first interim distribution to cover 39% of allowed claims
The significant recovery for unsecured creditors does not diminish the consequences of the unprecedented customer property segregation failure that led to MFGI's liquidation, including the length of time customers have been without their property.
The Trustee is grateful for the assistance, cooperation and guidance of Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York, the Securities Investor Protection Corporation, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
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.
Media Contact for MF Global Inc. Trustee:
SOURCE Office of the Trustee for the Liquidation of MF Global Inc.