China

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

This is an update to clients and creditors following our Statement to clients on 16 March 2012.

 

Second interim distribution application:

 

The Provisional Liquidators ("PLs") have submitted an application to the Hong Kong Court ('Court') on 20 March 2012 to seek the Court's approval to make a Second Interim Distribution to Qualifying Clients in an aggregate amount of not more than HK$400 million. The Court has set a date of 4 May 2012 for this application to be heard, and the PLs would anticipate being in a position to commence paying this second distribution within 2-4 weeks of the Court granting the order.

 

Any client who has not yet submitted the claim form previously provided (see link below), will be required to do so before they can receive any further distributions, if and when the Order is granted by the Court.

 

 

First Meetings of Contributories and Creditors:

 

In accordance with the provisions of the Companies Ordinance, the PLs convened the first meetings of contributories and creditors of both MFG-HK and MFH ('the Companies') yesterday, which meetings resolved the PLs should make applications to the Court to order, in respect of both companies, that :

 

1. the PLs, Patrick Cowley, Fergal Thomas Power and Lui Yee Man continue in office as the Joint and Several Liquidators of the Companies.

2. a Committee of Inspection ('COI') be appointed to act with the liquidators.

3. the liquidation of the Companies' be conducted as a creditors' voluntary winding up.

 

The creditors also passed resolutions to nominate various creditors to be on the Companies' COIs, which will be reported to the Court.

 

Interim payment application of the PLs' fees and disbursements:

 

The Court yesterday sanctioned an interim payment on account be made to the PLs from the assets of MFG-HK equivalent to 70% of the fees and disbursements incurred by the PLs for the period from 2 November 2011 up to the date of any further order appointing them as Liquidators of the Companies.

 

Reconciliation of clients' positions:

 

As mentioned in the last update, the reconciliation process in respect of clients' North American positions is ongoing and is being undertaken in tandem with the follow up for the final or verified transfer and close-out prices from the special administrators of MFG UK and the provisional liquidators of MFG Singapore.

 

Clients of MFG-HK are encouraged to contact Ms Jasmine Lai on +852 2913 2539 or email mfglobalhk@kpmg.com with any enquires.

 

 

Yours faithfully

For and on behalf of MFG-HK (In Liquidation) and MFH (In Liquidation)

 

Patrick Cowley

Joint and Several Provisional Liquidator

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