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.
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.
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.
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.
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.
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.
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.
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).
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.
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
