This is an update following our Statement to clients on 15 December 2011.
As of today, 23 December 2011, the Provisional Liquidators (PLs) currently have over HK$1 billion under their control in Hong Kong, some of which has been distributed for interim payments. Of these sums, HK$937 million is held in the Provisional Liquidators’ accounts at Standard Chartered Bank, and HK$97 million is held in fixed deposits at MFG-HK’s Hong Kong based banks.
As at 15 December 2011, the Hong Kong Court had sanctioned an interim distribution of up to HK$500 million to "Qualifying Clients" of MFG-HK.
The PLs' have now made a number of interim distribution payments to clients who had cash only balances as at 28 October 2011, and are continuing to work towards further payments in coming days and weeks.
As mentioned in the last update, however, it may take longer than the 2-4 week period to make interim distribution payments to certain clients, in respect of whose position transfers and close outs we are still missing critical data.
The PLs have this week met a number of Qualifying Clients individually to address specific issues relating to the interim distribution, the client's net closed out cash balance, the undertaking and the remaining issues to be addressed in each case prior to any payment being made.
As mentioned in our previous updates, the PLs 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 for both, transfers and close-outs, from overseas brokers and MF affiliates, which means that the reconciliation process will take longer to complete than we would like.
As noted above, in some cases, where critical data is missing, there may be a necessary delay in making any payment in respect of the proposed interim distribution.
Clients of MFG HK are encouraged to contact Ms Jasmine Lai on +852 2913 2539 or email email@example.com should you have any enquires.
For and on behalf of MF Global Hong Kong Limited
Joint and Several Provisional Liquidator
(The Joint and Several Provisional Liquidators act as agents of MFG-HK without personal liability)