MF Global UK Special Administrators to Return £54m of Client Assets
The application to approve the MF Global UK asset distribution plan at the High Court was successful, meaning that the special administrators can now begin to return around £54m of client assets.
Richard Heis, joint special administrator of MF Global UK and restructuring partner at KPMG, commented: “Today’s court hearing represents an important milestone in returning some £54m of agreed client assets; largely comprising shareholdings plus some physically held securities and LME commodities and warrants. The MF Global UK asset distribution plan sets a precedent as it is the first use of such a plan under the special administration rules. We will be sending letters to clients with agreed asset claims over the coming days to explain and agree the final steps in returning their assets. The return of client assets will commence from 1st August.
“It is important to note that there is still over £1bn of alleged asset claims, principally where it is claimed that MF Global UK held the assets on behalf of clients but the company’s records show that the assets were transferred to MF Global UK under absolute title transfer. The single largest alleged client asset claimant is MF GlobaI Inc., which has submitted a claim for the return of $639m of US Treasury Bills and other assets. We have issued court proceedings to seek determination of the validity of the claim; the trial is scheduled for April 2013.”
The special administrators have updated the asset distribution plan, published on the website on 29th June 2012, to ensure it incorporates the latest progress on the agreement of claims plus additional supporting documentation. The asset distribution plan approved by the court and supporting documentation will be available at: www.kpmg.co.uk/mfglobaluk. Assets can only be returned after receipt of settlement instructions from claimants, through the completion of relevant forms which are enclosed with client letters.