Upon the application of the directors of MF Global UK Limited, the High Court has today appointed Richard Fleming, Richard Heis and Mike Pink of KPMG LLP as joint special administrators of MF Global UK Limited, a UK based broker-dealer business. The special administrators have also been appointed as joint administrators of MF Global UK Services Limited, which provides employee and pension services in relation to the UK operations. MF Global UK Limited is a wholly owned subsidiary of MF Global Europe Limited which in turn is a subsidiary of MF Global Holdings Limited, a company incorporated in Delaware, USA.
The administration of the two MF Global UK entities follows the filing for chapter 11 bankruptcy protection by MF Global Holdings Limited and MF Global Finance USA Inc on 31 October 2011.
On behalf of the joint administrators, Richard Fleming said: “Against the backdrop of challenging market conditions and the Eurozone crisis, the financial position of MF Global UK has significantly deteriorated in recent weeks. Following the filing for Chapter 11 by MF Global Holdings USA Inc, it would not be viable to operate MF Global UK Ltd on a standalone basis.
“The UK and overseas operations of MF Global UK Limited have ceased trading and the joint special administrators are working with the regulatory authorities, clearing systems and other counterparties in relation to the orderly wind down of the trading operations.”
This is the first use of the new special administration regime for investment banks and the administrators will prioritise the return of client money and remaining assets (chiefly margined futures and options exchange transactions and repurchase agreements); timely engagement with the authorities, exchanges and clearing houses as well as winding up the company for the benefit of creditors.
The business employs 725 people in the UK. Unfortunately, it is likely that there will be redundancies; an update on this will be provided as soon as possible.
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.