China

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

This is an update following our Statement to clients on 06 January 2012.

 

Winding Up Orders made against MFG-HK Companies

 

On 11 January 2012, the High Court of Hong Kong S.A.R. made orders for the winding up of MF Global Holdings Hong Kong Ltd and MF Global Hong Kong Ltd. KPMG's Patrick Cowley, Fergal Power and Lui Yee Man, who were appointed as Joint and Several Provisional Liquidators of MF Global Holdings Hong Kong Ltd and MF Global Hong Kong Ltd on 2 November 2011, will continue to act as Provisional Liquidators until such time as a liquidator is appointed.

 

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, both who had cash only balances as at 28 October 2011 and clients with open positions as at 28 October 2011. We are now continuing to complete the steps required to pay an interim distribution to the remaining 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 as 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 (In Liquidation)

 

Patrick Cowley

Joint and Several Provisional Liquidator

 

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