The application to approve the MF Global UK asset distribution plan at the High Court today was successful, meaning that the special administrators can now begin to return around £54m of client assets.
Richard Heis, joint special administrator of MF Global UK and restructuring partner at KPMG, commented: “Today’s court hearing represents an important milestone in returning some £54m of agreed client assets; largely comprising shareholdings plus some physically held securities and LME commodities and warrants. The MF Global UK asset distribution plan sets a precedent as it is the first use of such a plan under the special administration rules. We will be sending letters to clients with agreed asset claims over the coming days to explain and agree the final steps in returning their assets. The return of client assets will commence from 1 August.
“It is important to note that there is still over £1bn of alleged asset claims, principally where it is claimed that MF Global UK held the assets on behalf of clients but the company’s records show that the assets were transferred to MF Global UK under absolute title transfer. The single largest alleged client asset claimant is MF GlobaI Inc., which has submitted a claim for the return of $639m of US Treasury Bills and other assets. We have issued court proceedings to seek determination of the validity of the claim; the trial is scheduled for April 2013.”
The special administrators have updated the asset distribution plan, published on the website on 29 June 2012, to ensure it incorporates the latest progress on the agreement of claims plus additional supporting documentation. The asset distribution plan approved by the court and supporting documentation will be available at: www.kpmg.co.uk/mfglobaluk. Assets can only be returned after receipt of settlement instructions from claimants, through the completion of relevant forms which are enclosed with client letters.
For further information please contact:
Sorrelle Cooper, KPMG – + 44 20 7694 8527 / +44 7932 078218
Katy Broomhead, KPMG - +44 161 8384623 / +44 7824537963
Notes to Editors:
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed joint special administrators of MF Global UK Limited, a UK based broker-dealer business, and MF Global UK Services Limited, which provides employee and pension services in relation to the UK operations, at 5pm on Monday 31 October 2011. 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, which filed for chapter 11 bankruptcy protection on 31 October.
The objectives of the administration are:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have 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.