Interim Distribution of MF Global Client Monies Eyed in Few Weeks
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP, the Joint Special Administrators of MF Global UK Limited, have released an update following the creditors’ meeting on the progress made in the special administration to date, including a statement on the interim distribution of client monies.
Over 800 representatives of creditors and clients attended the creditors’ meeting and voted overwhelmingly in favour of the Joint Special Administrators’ proposals, which include the prospect of interim distribution of client monies within the next few weeks.
Richard Heis, joint special administrator, said: “This has marked a milestone in the special administration of MF Global UK.”
Meanwhile, the administrators have so far billed MF Global £14 million with a further £3.5 million for solicitor fees.
As of 9 January 2012, the Special Administrators have recovered the majority of the $100 million segregated client assets to distribute to the clients of MFG UK and have now analysed the validity of claims against 96% by market value of those client assets.
Where ownership is relatively clear, the Special Administrators are in discussion with clients in relation to the return of these assets, representing approximately $30 million of client assets. The administrators expect to conclude these discussions in the next two weeks, after which they are likely to announce a bar date.
The Special Administrators have recovered £594 million, representing 82% of the Company’s client money balances. The remainder of the monies are largely held by affiliates in particular MF Global Inc.
The Special Administrators propose to update and consult with the court in the week ending 3 February and expect to make an interim distribution shortly thereafter.