The Liquidators of MFG-HK refer to their Second Report to Creditors and Contributories of MFG-HK dated 20 December 2013. As foreshadowed in that report, the Liquidators of MFG-HK have now filed an application with the Hong Kong Court (“Court”) for directions or orders that:
- all costs and expenses incurred by the Liquidators of MFG-HK in administering, collecting in and dealing with the Client Money (“Trust Costs”) be paid out of the Client Money pool before any final distribution is made to the Qualifying Clients; and
- to the extent Qualifying Clients suffer a shortfall in recovering the entire amount of their claim to the Client Money as a result of the pari passu deduction of Trust Costs, the Qualifying Client will have an unsecured claim against MFG-HK which is admissible to proof against MFG-HK (“Costs Claim”); and
- to the extent Qualifying Clients suffer a shortfall in recovering the entire amount of their claim to the Client Money as a result of a deficiency of assets in the Client Money pool, the Qualifying Client will have an unsecured claim against MFG-HK which is admissible to proof against MFG-HK (“Assets Claim”).
It is important to note that the Court has previously made orders permitting the Liquidators of MFG-HK to deduct the Trust Costs from the Client Money pool before any final distribution is made to Qualifying Clients, but the Court has yet to determine the exact quantum of the Trust Costs to be deducted from the Client Money pool. Now that the Liquidators of MFG-HK are nearing completion of their work in respect of the Client Money, we consider it an appropriate juncture to seek the Court’s sanction as to the quantum of the Trust Costs to be paid out of the Client Money pool.
At the same time, the Liquidators of MFG-HK also consider it appropriate to seek the Court’s direction on the admissibility of Costs Claim and Assets Claim against MFG-HK’s general estate. This is because the admission or rejection of these claims will materially affect other stakeholders, in particular the MFG-HK’s sole shareholder, MF Global Holdings Limited (“MFG Holdings”). Given the diametrically opposing interests of these stakeholders, the Liquidators of MFG-HK believe it is appropriate for the Court to determine the issue and make appropriate directions.
The hearing of this application is scheduled to be held at 10:00am on 27 and 28 August 2014. The Liquidators of MFG Holdings are represented by a separate legal team in the application. The Liquidators will keep you informed of the progress of the application. In the meantime, if you have any questions about the application or would like copies of the Court documents, please contact 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: firstname.lastname@example.org
Alternatively you can contact Ms Stuti Jain on +852 2140 2275 or Mr. Samuel Wan on +852 2140 2306 with any enquiries.
For and on behalf of MFG-HK (In Creditors' Voluntary Liquidation)
Lui Yee Man
Joint and Several Liquidator
(The Joint and Several Liquidators act as agents of MFG-HK without personal liability)