China

Statement from the Provisional Liquidators, MF Global Hong Kong Limited (Provisional Liquidators Appointed) ("MFG HK") 

This is an update following our Statement to clients on 2 December 2011.

 

Clients' funds:

 

As of today, 9 December 2011, the Provisional Liquidators currently have the equivalent of approximately HK$985 million under their control in Hong Kong. Of these sums, HK$626 million is held in the Provisional Liquidators’ accounts at Standard Chartered Bank, HK$116 million is held in fixed deposits at MFG-HK’s Hong Kong based segregated bank accounts, and HK$243 million is currently held in MFG-HK’s DCASS client account with the HKFE Clearing Corporation Limited.

 

Interim Distribution Application:

 

As indicated in our last Statement, the proposed distribution process was circulated to relevant clients on 2 December 2011. As of today, the Provisional Liquidators have received responses from approximately 99% of the non-affiliate clients in terms of total equity as at 28 October 2011 indicating their support for the proposal.

 

The application to make an interim distribution of clients' funds of up to HK$500 million is in the final stage of drafting, and should be filed with the Hong Kong Court early next week.

 

Reconciliation of clients' positions:

 

As mentioned in our last update, the Provisional Liquidators are continuing to reconcile clients’ positions, using data currently available, but are still missing considerable amounts of information, in the form of statements, confirmations and prices (including liquidation prices), from overseas brokers and MF affiliates, which means that the reconciliation process will take longer to complete than we would like.

 

Claim forms:

 

Claim forms are available on MF Global Hong Kong's website: www.MFglobal.com.hk now and clients are encouraged to submit their completed claim forms by 16 December 2011 by email to MFGHKclaims@kpmg.com or by registered post to the Provisional Liquidators, c/o KPMG, 8th Floor, Prince's Building, 10 Chater Road, Central, Hong Kong., so as to facilitate the early completion of the reconciliation and determination processes.

 

Great care should be taken to fill up the claim form correctly, and to provide all relevant supporting information.

 

Clients of MFG HK are encouraged to contact Ms Jasmine Lai on +852 2913 2539 or email MFGlobalHK@kpmg.com should you have any enquires.

 

Yours faithfully

For and on behalf of MF Global Hong Kong Limited

 

Patrick Cowley

Joint and Several Provisional Liquidator

 

(The Joint and Several Provisional Liquidators act as agents of MFG-HK without personal liability)