United Kingdom

Details

  • Service: Advisory, Transactions & Restructuring, Restructuring
  • Industry: Financial Services
  • Type: Business and industry issue
  • Date: 29/06/2012

MF Global UK - Client Asset Distribution Plan 

Update 24 January 2014  - Appropriation of unclaimed client assets
 
Further to the Administrators’ update below dated 15 November 2013, MFGUK, as trustee of the Client Asset estate, has now appropriated all unclaimed client assets. The proceeds of the appropriated unclaimed client assets have been used to meet the costs of holding those assets in the client asset estate.
 
If you have further questions which are not addressed on the website, please email mfglobalclaims@kpmg.co.uk  or call +44 (0) 20 7785 0308, where a member of the Administrators’ staff will be able to assist.

 

Update 15 November 2013 - All unclaimed client assets to be appropriated

 

The Administrators are pleased to announce that by 31 December 2013 they expect that they will have returned 99.9% of all client assets to clients.  They also expect to have realised all securities held by the general estate.


This means that from 1 January 2014, all overheads and other costs of holding the assets will fall on the remaining 0.1% of client assets which have not yet been claimed. By mid-January those costs will exceed the value of the remaining assets. Accordingly, all unclaimed client assets will be appropriated in January 2014 to cover costs. The relevant clients will NOT have claims into the general estate with respect to those assets.  


Accordingly, please contact the Administrators using the contact details below as soon as possible, if you:

i. have not yet provided the Administrators with the required instructions to facilitate the return of your client assets to you; or


ii. believe that you have a claim to client assets under the Distribution Plan but have not yet been contacted by the Administrators.

 

You are reminded that in order to facilitate the return of your client assets you MUST give the Administrators the necessary instructions to enable them to do so. This can be done by completing and returning the forms which to the Administrators previously provided to you.  If you need a new copy of those forms, please contact the Administrators using the contact details below as soon as possible.  

 
If you fail to return the appropriate forms by Friday 20 December 2013, your assets will be appropriated and you will lose your right to have your client assets returned to you. You will not have any claim to those assets in the administration.


If you have further questions which are not addressed on the website, please email mfglobalclaims@kpmg.co.uk or call +44 (0) 20 7785 0308, where a member of the Administrators’ staff will be able to assist.
 

Update 28 August 2013 – Confirmation of the rebate and the resulting unsecured claim

 

Further to the update dated 16 August 2013, the Administrators can now confirm that the Shared Cost Percentage (as defined in the Distribution Plan) has decreased from 6.74% to 1.554%. As a result, the Administrators have now calculated:

i. the level of the rebate due to claimants pursuant to Clause 18 of the Distribution Plan; and

 

ii. the amount of each claimant’s unsecured claim pursuant to Clause 24 of the Distribution Plan.

Claimants will receive confirmation of those respective figures by email and by post.

 

On 22 August 2013, the Administrators declared a first interim distribution to unsecured creditors of 43 pence in the pound to all unsecured creditors whose claims have been admitted for dividend purposes. Accordingly, payment of the first interim dividend with respect to unsecured claims pursuant to Clause 24 of the Distribution Plan will commence on or about 29 August 2013. Payment of the rebate will commence on or about the same date.

 

By way of example, this means if a client had paid £674 in Shared Costs and £20 in Specific Costs, they would receive a Shared Cost rebate of £518.60 and a dividend of £75.42 on their unsecured creditor claim of £175.40 (adjusted Shared Costs of £155.40 plus Specific Costs of £20).

 

 

Update 16 August 2013 – Anticipated Rebate

 

The Administrators are pleased to announce that the conditions relating to the conditional settlement agreements with MF Global Inc and MF Global Holdings Limited have now been satisfied and that the settlement agreements are now effective.

 

As a result, it is expected that certain assets that were being held by MFGI will shortly be returned to MFGUK. This will result in a reduction of the Shared Cost Percentage (as defined in the Distribution Plan). The Administrators anticipate that the Shared Cost Percentage will decrease from 6.74% to 1.554%.

 

Pursuant to Clause 18 of the Distribution Plan, claimants who have already received a distribution of their client assets will be entitled to receive a rebate in respect of part of the costs that they have already paid in relation to those assets.

 

Claimants will also be aware that pursuant to Clause 24 of the Distribution Plan, they may have a claim as an unsecured creditor in relation to the costs they have already paid.  Please note that in calculating that claim the Administrators will take into account any rebate they have paid to that claimant. For example, if a claimant has already paid £100 and has received a rebate of £80, his claim in the unsecured estate will accordingly be reduced to £20.

 

The Administrators are still in the process of calculating the exact rebate and any resulting unsecured claim and will confirm the level of the rebate (and the resulting unsecured claim) to each claimant in due course. Payment of any resulting unsecured claims will then follow shortly thereafter.

 

Please refer back to this website for further updates in relation to the anticipated distribution to unsecured creditors and the rebate.


 

Update 29 October 2012 - Final 

  

This update concerns the Administrators’ Distribution Plan. For a copy of the Distribution Plan and for further detail in relation thereto, please see the Administrators’ previous updates which are set out below.

 

As at the date of this update all claimants set out in Schedules 1 or 2 should have received Claimant Option Forms. However, to date, only 50% of those claimants have returned their Claimant Option Forms to the Administrators.

 

The Administrators would like to remind all claimants who appear in Schedules 1 or 2 that they must complete, return and comply with ALL the steps set out in the appropriate forms before the Administrators can return their client assets to them. The Administrators also remind claimants that the Specific Costs set out in the columns entitled “Share of Costs” as set out in Schedules 1 and 2 of the Distribution Plan are estimates only. Shared Costs, which include rent and custody fees with respect to your Client Assets, will continue to accrue until the date the Administrators return those Client Assets to you.

 

If you fail to give the Administrators the required instructions to enable them to return your Client Assets by returning the Claimant Options Form, the Administrators may seek guidance from the Court on how to deal with your Client Assets and you may ultimately lose your ability to have your Client Assets returned to you.

 

If you appear on Schedule 1 or 2 of the Distribution Plan and have not received a Claimant Option Form please contact the Administrators using the contact details below. If you have any queries regarding which form you should be completing please email mfglobalclaims@kpmg.co.uk or call us on +44 20 7785 0308
 

Update 19 July 2012 - Final version of the Distribution Plan

  

Further to the update dated 18 July 2012, this update makes available the final version of the Distribution Plan approved by Court order dated 19 July 2012.
 
The Effective Date of the Distribution Plan is 19 July 2012. The Administrators will now commence the process of returning approximately £54m of client assets to claimants with Accepted Client Asset Claims (as defined in the Distribution Plan). Further information as to the process of distributing such client assets is set out below in our update of 18 July 2012.
 
Documentation
 
A copy of the Court order, Distribution Plan (including the explanatory statement) and associated schedules can be viewed or downloaded below.

 

 

Update 18 July 2012 - Approval of Distribution Plan

 

The application to approve the Distribution Plan at the High Court on 18th July 2012 was successful, meaning that the Administrators can now begin to return around £54m of client assets.  A copy of the press release issued can be found here.  Please note that under the terms of the Distribution Plan the Administrators will not commence the distribution of Client Assets until 1st August 2012 at the earliest.
 

The Administrators will be sending out Claimant Option Forms in substantially the same form as that on this website to all clients with agreed assets (held by MFG) by 27th July 2012 via email (where one is available) and post.  Please note that if you held commodities, warrants, physical positions, or have unlisted assets (per Schedule 1 or 2) then the Administrators will be sending you a slightly revised Claimant Option Form to that currently on this website.

 

If you have not received a Claimant Option Form by 30th July 2012 please contact the Administrators using the contact details below, but please refrain from contacting us prior to this as it may cause a delay in the sending of forms out to all claimants.
 

Once you have received your Claimant Option Form you will need to complete the appropriate forms to

advise the Administrators how you would like your assets to be returned and how payment of any shared costs/specific costs/encumbrances will be settled, and return these to the Administrators according to the instructions on the forms.  There are a number of different options available to claimants so please ensure that you read the letter and forms carefully.  If you have any queries regarding which form you should be completing please email mfglobalclaims@kpmg.co.uk or call us on +44 20 7785 0308.

 

Update 17 July 2012 - Details of Court Hearing

 

The hearing date for the application has been set for 18 July 2012 and will take place at 10:30am, Court 17, Rolls Building, Fetter Lane, London, EC4A 1NL before Mr Justice David Richards.

 

Update 17 July 2012 - Modified Plan and draft court order

 

Ahead of the court hearing on 18 June 2012, the special administrators have submitted the following documents to court, which incorporate minor amendments to the Explanatory Statement, Distribution Plan and schedules reflecting developments since the initial filing. In addition please find a copy of the witness statement of Richard Faulkner which was submitted to support the documents.

 

 

 

Update 16 July 2012 - Shared Costs Report

 

On Wednesday, 11 July 2012 the special administrators submitted a witness statement and evidence in support of the application submitted on 29 June 2012 for approval of the Distribution Plan. In accordance with rules 135 and 137 of the Investment Bank Special Administration (England and Wales) Rules 2011, the special administrators have set out in the Distribution Plan how the expenses of the special administration incurred in pursuit of Objective 1 (distribution of client assets) have been allocated between Client Assets. The independent fee reviewer who is already engaged by the Creditors’ Committee to review the fees of the Administrators has been engaged to and has produced a report on the methodology used to allocate Shared Costs under the Distribution Plan (as defined therein) (the “Shared Costs Report”). The Shared Costs Report has been submitted as evidence in support of approval of the Distribution Plan.

 

A copy of the witness statement and the Shared Costs Report can be viewed or downloaded below.

 

 

 

DISTRIBUTION PLAN

 

An application for approval of a distribution plan for the return of client assets prepared pursuant to part 5 of the Investment Bank Special Administration (England and Wales) Rules 2011 (the “Distribution Plan”), was submitted to the High Court of Justice (the “Court”), under insolvency proceedings No. 9527 of 2011, on 29 June 2012.  The hearing date for the application has been set for 18 July 2012.

 

The Distribution Plan sets out how Client Assets (as defined in the Distribution Plan) are to be returned to claimants and, amongst other matters, how the costs associated with this process are to be met.  Please note that the Distribution Plan applies to all Client Assets held by MF Global UK Limited (in special administration) (the “Company”) as at 31 October 2011, the date the Company entered into special administration, as well as any redemption proceeds, dividends, corporate actions or otherwise, received by the Company in respect of such Client Assets after 31 October 2011. The Distribution Plan does not apply to client money or general creditor claims, which are being dealt with separately.

 

Notice to claimants

 

Notification of the application for the approval of the Distribution Plan has been sent by post and email, where address information is available, to the following claimants:

 

  • All claimants who have submitted a Client Asset claim.  This includes those claimants who may be disputing the classification of their assets.
  • All claimants who, according to the Company’s records, were entitled to, but did not submit a Client Asset claim before the Bar Date (as defined by the Distribution Plan).

  

Identification of client assets in the Distribution Plan

 

You should use your Client Code (as defined in the Distribution Plan) to identify assets to which you have made a Client Asset claim, which will be set out at Schedules 1 to 3 of the Distribution Plan.  In previous correspondence your Client Code will have been referred to as your customer reference number.

 

If you have submitted a Claim for Client Assets and cannot identify your Client Asset Claim within Schedules 1 to 3 of the Distribution Plan, or have any questions in relation to the Distribution Plan, please contact the Administrators at mfglobalclaims@kpmg.co.uk.

 

Documentation

 

A copy of the Distribution Plan (including the explanatory statement) and associated schedules, and the Court application and notice to claimants can be viewed or downloaded below.

 

 

Should you require a hard copy of the Distribution Plan or notice, you may request a copy from any of the following:

 

Email:    mfglobalclaims@kpmg.co.uk

 

Telephone Number:  +44 207 785 0308

Via Letter to:     

MF Global UK Limited (in special administration)

MF Global Claims
5 Churchill Place, Canary Wharf
London, E14 5HU
United Kingdom

While every reasonable effort is made to ensure that the information provided on the pages of this website concerning MF Global UK Limited (in Special Administration) and its Joint Special Administrators, MF Global Overseas Limited (in Administration), MF Global UK Services Limited (in Administration) and MF Global Finance Europe Limited (in Administration) and their respective administrators  (together the "MFG UK Estate") is accurate, no guarantees for the currency or accuracy of the website or information therein are made. The pages of this website concerning the MFG UK Estate and related material (or third party information), is provided ‘as is’. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied.
 
Please be aware that the MFG UK Estate and KPMG LLP, hereby exclude all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the use of this website or the information, content or materials included on this website, including without limitation, indirect or consequential loss or damage, loss of actual or anticipated profits, loss of revenue, loss of business, loss of opportunity, loss of anticipated savings, loss of goodwill or loss of reputation. Nothing in this disclaimer excludes or limits the Joint Special Administrators', the Joint Administrators' or MFG UK Estate's liability for fraud or fraudulent misrepresentation or any liability which may not be limited or excluded by law.
 
The use of this website and any dispute or claim arising out of or in connection with this website (including non-contractual disputes or claims) is governed by English law and you irrevocably submit to the exclusive jurisdiction of the English courts.
 

MF Global UK special administration

Contact information

For all non-press enquiries on MF Global UK Limited please email the following:

 

Claim queries 

mfglobalclaims@kpmg.co.uk