This is an update following our Statement to clients on 5 December 2013.
The Liquidators of MFG-HK are pleased to announce that they have obtained the sanction of the Hong Kong Court on 6 March 2014 to finalise and/or give effect to into various settlement agreements with the MF Global Affiliates and a third party broker to enable the recovery of client money currently held by those affiliates and brokers.
At the same hearing, the Liquidators have also obtained sanction from the Hong Kong Court for the payment of further interim distributions of up to $110 million to Qualifying Clients. If, as the Liquidators anticipate, these settlement agreements are implemented and further interim distributions totaling HK$110 million are made, this will amount to the equivalent of an additional distribution of 9 cents in the dollar of claims to the Client Money. This will bring the level of cumulative distributions to Qualifying Clients up to a total of 94 cents in the dollar.
Due to the differences in timing of the recoveries from the affiliates and overseas brokers, the Liquidators propose to distribute the next HK$110 million in two installments. The first installment of the distribution will be the equivalent of 6.5 cents in the dollar for each dollar of current claims to the Client Money as stated in your statement or, for those clients who have been issued with one, their amended statements. The second installment of the distribution of not more than 2.5 cents in the dollar will then be made once the remaining funds from the affiliate and overseas brokers are recovered.
As with earlier interim distributions, Qualifying Clients must meet certain conditions set out in the Order before they can receive payment of a fourth interim distribution. The Liquidators will contact Qualifying Clients individually with information about these terms and conditions.
The Liquidators are in the process of obtaining the sealed Orders from the Hong Kong Court and obtaining the necessary consents from the SFC, both of which are required before any payments from the Client Money pool can be made to Qualifying clients. As soon as the necessary approvals are received the Liquidators will commence the payment process immediately.
At the same hearing, the Hong Kong Court also sanctioned the methodology used to determine the entitlements of Qualifying Clients to Client Money and the allocation of miscellaneous reconciliation items relating to the Client Money pool.
If you have any questions, please write to the Liquidators at:
MF Global Hong Kong Limited (In Creditors' Voluntary Liquidation)
c/o 8/F, Prince's Building
10 Chater Road, Central
Or by email: email@example.com
Alternatively you can contact Mr. Samuel Wan on +852 2140 2306 with any enquiries.
For and on behalf of MFG-HK (In Creditors' Voluntary Liquidation)
Joint and Several Liquidator
(The Joint and Several Liquidators act as agents of MFG-HK without personal liability)