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 23 December 2011.

 

Clients' funds:

 

As of today, 6 January 2012, the Provisional Liquidators (PLs) have recovered HK$1.06 billion from MFG-HK's former banks, brokers and counter-parties. Clients' funds are now held in the Provisional Liquidators’ segregated bank accounts at Standard Chartered Bank in Hong Kong.

 

Interim Distributions to Qualifying Clients:

 

On 15 December 2011, the Hong Kong Court sanctioned an interim distribution of up to HK$500 million to "Qualifying Clients" of MFG-HK.

 

The PLs have made a number of interim distribution payments to clients who had cash only balances as at 28 October 2011, and we are now working to complete the steps required to pay an interim distribution to those Qualifying Clients who had open positions as at 28 October 2011.

 

As mentioned in the last update, however, the timing of payments to those clients who had open positions at 28 October 2011 is dependent on the PLs obtaining the information required to verify each client's status as a Qualifying Client, in accordance with the Court's Order. Where we are still missing critical data, it may take longer to make interim distribution payments to certain clients.

 

Reconciliation of clients' positions:

 

This process is ongoing, and is being undertaken in tandem with the interim distribution process.

 

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)