In accordance with The Investment Bank Special Administration Regulations 2011 and Paragraph 47(1) Schedule B1 of the Insolvency Act 1986 ("the Act"), the directors of an insolvent investment bank are bound to submit a Statement of Affairs (“SoA”) to the insolvency office holders. The SoA is a statutory document setting out the financial position of the company at the date of insolvency.
On 7 March 2012, the SoA of MF Global UK Limited ("MF Global UK") was submitted to the Special Administrators. The SoA was signed by Mr Charles Pendred, non-executive Chairman of MF Global UK, and statements of concurrence were also received from Mr Richard Moore and Mr Kemper Cagney. A copy of the SoA is available in the section immediately below this note, which also includes some of the key assumptions used by the directors in preparing the SoA.
The document received complies with the statutory requirements under the Act.
Given the nature and number of the extant issues impacting both the MF Global UK house and client asset estates, the directors have been unable to reach a view on the realisable value of particular classes of assets or, consequently, the likely surplus or shortfall to the estates. The Special Administrators recognise the desire of creditors, clients and other stakeholders to have greater visibility over both the house and client estates, and intend to publish information (subject to any commercial or legal constraints) about each class of assets when available. Similarly, we will update creditors on the distribution model that we disclosed in our February 2012 court hearing and the key issues that were being considered therein.
By publishing the SoA, the Special Administrators do not purport that the contents of the SoA are accurate – either as to quantum of claims or classification between segregated and non-segregated/creditor claims. The ultimate determination of these matters will be by the Special Administrators or by the Court.
Statement of Affairs of MF Global UK: summary of assets and liabilities as at 31 October 2011
The Special Administrators have taken down the list of creditors, which forms part of the SoA, while they consider an individual’s claim of personal threat. In accordance with the relevant special administration provisions, the Special Administrators must disclose the detailed directors’ SoA. They can only apply for a court order to redact information contained in the SoA in specific circumstances, such as where there is a threat of physical violence or where publication would prejudice the conduct of the special administration.