United Kingdom

Details

  • Service: Advisory, Transactions & Restructuring, Restructuring
  • Industry: Financial Services
  • Type: Business and industry issue
  • Date: 03/05/2013

Client Money Distribution Application - imposition of bar date 

On 14 June 2013 the High Court handed down a judgment in support of the Order (PDF 112 KB) made on 11 June 2013. A copy of the judgment is available by clicking here (PDF 901 KB).

 

 

Client Money

 

Notice of Order prescribing a client money distribution procedure

Notice of proposed distribution of client money and bar date for claims of 19 July 2013


This is notice that, on 11 June 2013, the English High Court made an Order prescribing a procedure by which client money held by MF Global UK Limited (in special administration) (“MFG UK”) should be distributed to clients.  The rules governing the client money distribution procedure are set out at Schedule A to the Order (the “Rules”).  The Order can be viewed and downloaded here (PDF 112 KB).


This is also notice pursuant to Rule 6 that Richard Fleming, Richard Heis and Michael Pink of KPMG LLP, the administrators of MFG UK (the “Administrators”), intend to make a second interim distribution of client money to clients of MFG UK, in accordance with the Rules.


Clients who have not yet submitted a client money claim, but wish to do so, must submit their claim in writing to the Administrators by returning a client money claim form or a signed settlement agreement. 


Clients may submit client money claims at any point up to and including 19 July 2013, being the last date for proving.  Clients who have not submitted a client money claim by the last date for proving will not be entitled to share in the proposed distribution.


The Administrators intend to make a distribution to clients within the period of two months from the last date for proving. 


(If client money claims are received after the last date for proving, the Administrators are likely to wait until after the distribution has been declared before dealing with the claims.  Any such claims that the Administrators accept will then be paid a ‘catch up’ distribution, to the extent there are funds available for distribution, before any further distributions are paid to other clients.)


Any further notices of intention to make distributions of client money will be given by way of advertisement on the MFG UK pages of the KPMG website only (www.kpmg.co.uk/mfglobaluk) and will not be sent directly to clients.


Any further communications from the Administrators to clients of MFG UK relating to client money  are likely to be sent by email only.  This includes notices informing clients that their client money claims have been rejected.  Any client who has not already done so should use the contact details below to ensure that the Administrators have the client’s current email address for these purposes.

Clients who have already returned counter-signed settlement agreements agreeing the value of their client money claims need take no further action with respect to submitting a client money claim.  Similarly, clients who have already submitted a client money claim form need only take further action if requested to do so by the Administrators. Such further action could include the provision of further information requested by the Administrators, or the counter-signing of any settlement agreement sent following receipt of a claim form.


Copies of the client money claim form and instructions explaining how to submit a client money claim can be accessed at:

http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/MF-Global-Client-Creditor-claims-forms.aspx.


Clients of MFG UK may request hard copies of the Order and other documents mentioned above: (a) by emailing
mfglobalclaims@kpmg.co.uk, (b) by writing to MF Global UK Limited (in special administration), 5 Churchill Place, Canary Wharf, London, E14 5HU, England, or (c) by telephoning +44 (0)20 7785 0308.

 

Unsecured Dividend

 

Notice of Order postponing the ‘last date for proving’ to 19 July 2013


Notice inviting creditors to submit claims before 19 July 2013


On 28 November 2011, the Administrators gave notice (the “Notice”), pursuant to rule 175(1) of The Investment Bank Special Administration (England and Wales) Rules 2011 (the “SAR”), that they were proposing to make an interim distribution to the preferential creditors (if any) and to the unsecured creditors of MFG UK within the period of two months from 30 April 2012. 

 
The Notice stated that creditor claims could be lodged with the Administrators at any point up to and including 30 April 2012, that date being the ‘last date for proving’.  A copy of the Notice is available at: http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/MF-Global-UK-creditors-claims.aspx


On 29 June 2012, the Administrators gave notice that they had taken the decision to postpone the dividend pursuant to SAR 177(1) and 177(2) until such time as certain issues had been resolved.  The Administrators now hope that those issues will be resolved during the course of August 2013, such that they will be able to make the distribution anticipated by the Notice.


This is notice that, on 10 June 2013, English High Court made an Order postponing the ‘last date for proving’ to such date in July 2013 as the Administrators think fit.  The Order can be viewed and downloaded from here (PDF 1.58 MB). The Administrators have determined that the ‘last date for proving’ should fall on 19 July 2013.

 
This is a notice pursuant to SAR 175(4) inviting creditors to submit creditor claims, if they have not already done so. 


Creditors may submit creditor claims at any point up to and including 19 July 2013, being the revised last date for proving.   Creditors who have not submitted a creditor claim by the last date for proving will not be entitled to share in the proposed dividend.


(If creditor claims are received after the last date for proving, the Administrators are likely to wait until after the dividend has been declared before dealing with the claims.  Any such claims that the Administrators accept will then be paid a ‘catch up’ dividend, to the extent there are funds available for distribution, before any further dividends are paid to other creditors.)


Creditors are requested to submit their creditor claims at the earliest opportunity.  Creditors are encouraged to submit supporting evidence with their creditor claims and may be requested to provide such further details or produce additional documentation or other evidence as the Administrators may request.


The Administrators intend to declare and make an interim distribution to creditors within the period of two months from the revised last date for proving.


Creditors who have already returned counter-signed settlement agreements agreeing the value of their unsecured claims need take no further action with respect to submitting a creditor claim. Similarly, creditors who have already submitted a creditor claim form need only take further action if requested to do so by the Administrators. Such further action could include the provision of further information requested by the Administrators, or the counter-signing of any settlement agreement sent following receipt of a claim form.


Copies of the creditor claim form and instructions explaining how to submit an unsecured creditor claim can be accessed http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/MF-Global-Client-Creditor-claims-forms.aspx.

 


Creditors of MFG UK may request hard copies of the Order and other documents mentioned above: (a) by emailing mfglobalclaims@kpmg.co.uk, (b) by writing to MF Global UK Limited (in special administration), 5 Churchill Place, Canary Wharf, London, E14 5HU, England, or (c) by telephoning +44 (0)20 7785 0308.

 

The Administrators and MFG UK

 

Richard Heis, Michael Robert Pink and Richard Dixon Fleming were appointed as Administrators of MFG UK by an order of the High Court of England and Wales on 31 October 2011.  The Administrators’ insolvency practitioner numbers are 8618, 8004 and 8370 respectively.


The special administration proceedings are being conducted in the High Court of England and Wales, Chancery Division, Companies Court with number 9527 of 2011.  MFG UK’s registered number is 01600658.


The Administrators provide regular updates on the special administration on their website (www.kpmg.co.uk/mfglobaluk). 

 
The Administrators may be contacted: (a) by emailing mfglobalclaims@kpmg.co.uk, or (b) by writing to MF Global UK Limited (in special administration), 5 Churchill Place, Canary Wharf, London, E14 5HU, England (which is also the registered office and principal trading address of MFG UK).


Richard Heis


Dated 12 June 2013


 

 

On 2 May 2013, the Administrators and MFG UK applied to the High Court seeking directions for the imposition of a procedure by which distributions from the client money pool (the “CMP”) should be made (the “Client Money Distribution Application”). 

The Client Money Distribution Application is required, amongst other reasons, because neither the Financial Conduct Authority’s client money rules nor the Investment Bank Special Administration Rules 2011 (the “2011 Rules”) provide a mechanism for distributing from the CMP.  As such, the Administrators and MFG UK (as trustee of the CMP) seek directions which, if granted, will provide a clear and fair procedure by which future distributions from the CMP can be made (the “Client Money Distribution Procedure”).


In summary, the proposed Client Money Distribution Procedure follows closely the mechanism contained in the 2011 Rules for making distributions to unsecured creditors. If approved, the proposed Client Money Distribution Procedure will, amongst other things, facilitate the acceleration of increased distributions from the CMP.

 
Particular features of the Client Money Distribution Procedure include: (i) an interim bar date for claims to the CMP which places a time limit by which claims in respect of an individual distribution can be made; (ii) a procedure for rejecting claims to the CMP and a time limit for appealing such rejections; and (iii) a mechanism for the Administrators to make distributions without reserving for certain types of claim to the CMP, including rejected claims which have not been appealed and claims which have not been submitted within the requisite time limits.


The Administrators have filed a witness statement in support of the Client Money Distribution Application.  The purpose of the witness statement is to explain to the Court what the Client Money Distribution Procedure is and why it is required.  Copies of the Client Money Distribution Application and the witness statement can be found via the links below.

 


The Client Money Distribution Application is scheduled to be heard on 10 June 2013 with a time estimate of 1 day.


Please note that if you have already received a Client Money Proposal from MFG UK the Client Money Distribution Application will not affect your claim, however please do return your signed Client Money Proposal at your earliest convenience.  


If you have any questions concerning the Client Money Distribution Application, or if you are a client of MFG UK and you would like to receive hard copies of the above documents, please contact the Administrators at mfglobalclaims@kpmg.co.uk or by writing to MF Global UK Limited (in special administration), 5 Churchill Place, Canary Wharf, London, E14 5HU, England.

 

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