KPMG's Patrick Cowley, Fergal Power and Lui Yee Man, Rosalie were this morning appointed as Joint and Several Provisional Liquidators by the High Court of Hong Kong S.A.R. over the following companies:
MF Global Holdings Hong Kong Ltd
MF Global Hong Kong Ltd
The appointment follows the filing for bankruptcy protection by MF Global's ultimate parent company in the US, the appointment of KPMG partners as special administrators in the United Kingdom and provisional liquidators in Singapore, and the appointment of voluntary administrators in Australia.
The Securities and Futures Commission issued a restriction notice to MF Global Hong Kong Ltd on 1 November 2011 (the "Notice"). Under the Notice, MF Global Hong Kong Ltd is allowed to settle outstanding cash market transactions and has been directed to immediately assert its rights over any clients' money or other receivables held by any overseas person. In accordance with the Order today granted by the Court and the Notice, the Provisional Liquidators are permitted to continue to liquidate and transfer client positions to other brokers.
Patrick Cowley, Principal, KPMG China, says: "Following the recent failure to achieve a global sale of the entire company, and as a result of the response of the market to events in the US, particularly among MF Global's counter-parties and banks, the Hong Kong directors felt unable to continue their business, and therefore sought the protection of the Hong Kong court. The appointment of Provisional Liquidators will safeguard the assets of the Hong Kong companies, and ensure that the interests of clients, employees and markets are properly served. The Provisional Liquidators are assessing the options for the companies, and are actively seeking to dispose of the business in conjunction with other administrators appointed globally."
Customers are encouraged to contact their brokers in the first instance in order to address their existing positions.
Prior to the appointment of administrators, MF Global operated as a global broker of exchange-listed futures and options. The group operates in 12 countries on more than 70 exchanges. It provided execution and clearing services for exchange-traded and over-the-counter derivative products as well as for non-derivative foreign exchange products and securities in the cash market. It had a client base of more than 130,000 active accounts ranging from financial institutions, industrial groups, hedge funds and other asset managers to professional traders and private/retail clients.
A dedicated email address "email@example.com" has been established for other customer queries and parties who might be interested in acquiring the business of the companies.
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