- Clients and creditors vote in favour of Joint Special Administrators’ proposals
- Special Administrators propose to update the court in the week ending 3 February and expect to make an initial interim client money distribution shortly thereafter
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP, the Joint Special Administrators of MF Global UK Limited, have released an update following the creditors' meeting held yesterday on the progress made in the special administration to date, including a statement on the interim distribution of client monies.
Over 800 representatives of creditors and clients attended the creditors' meeting held yesterday and voted overwhelmingly in favour of the Joint Special Administrators’ proposals.
Richard Heis, joint special administrator, commented:
“This has marked a milestone in the special administration of MF Global UK. Both clients and creditors voted overwhelmingly in favour of our proposals, which include the expectation that we will be able to make an interim distribution of client monies within the next few weeks.”
As at 9 January 2012, the Special Administrators have recovered the majority of the $100 million segregated client assets to distribute to the clients of MFG UK and have now analysed the validity of claims against 96% by market value of those client assets. Where ownership is relatively clear, the Special Administrators are in discussion with clients in relation to the return of these assets, representing approximately $30 million of client assets. The administrators expect to conclude these discussions in the next two weeks, after which they are likely to announce a bar date.
As at 9 January 2012, the Special Administrators have recovered £594 million, representing 82% of the Company’s client money balances. The remainder of the monies are largely held by affiliates in particular MF Global Inc.
The Special Administrators propose to update and consult with the court in the week ending 3 February and expect to make an interim distribution shortly thereafter.
- Ends -
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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 31st 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 31st October.
The objectives of the administration are:
- To ensure the return of client assets as soon as is reasonably practicable;
- To ensure the timely engagement with market infrastructure bodies and the Authorities pursuant to regulation 13; and
- To either rescue the Investment Bank as a going concern or wind it up in the best interests of creditors.
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.