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 20 January 2012.

 

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 informed all Qualifying Clients the proportion of their entitlement under the first interim distribution payments.

 

Client funds:

 

As of today, 03 February 2012, the PLs have recovered HK$1.06 billion from MFG-HK’s former banks, brokers and counter-parties. The PLs are actively taking steps to secure and obtain an early return of the outstanding clients’ funds. The majority of outstanding clients’ funds are due from MFG-HK affiliates’ brokers. We have actively liaised with the appointees of the MFG-HK affiliates to reconcile the clients’ funds held with them. We have also lodged a formal claim against MFG Inc on 27 January 2012 and are in the process of lodging claims with MF Global Singapore Pte Limited, MF Global Australia Limited and MF Global UK Limited. Given the complexity and technical issues involved, the recovery of outstanding clients’ funds is likely to take some time.

 

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)