MF Global Trustees and Administrators Announce Agreements

          MF Global Trustees and Administrators Announce Agreements

  PR Newswire

  NEW YORK and LONDON, December 22, 2012

NEW YORK and LONDON, December 22, 2012 /PRNewswire/ --


MF Global Inc., MF Global UK Ltd. and MF Global Holdings Ltd. Reach Agreements
                   to Resolve All Claims Among The Estates

James W. Giddens, Trustee for the Securities Investor Protection Act (SIPA)
liquidation of MF Global Inc. (MFGI), and Richard Heis, a Joint Administrator
of MF Global UK Ltd. (MFGUK), today jointly announced that they have reached
an agreement to resolve all claims between the two entities, including the
30.7 client assets and repo to maturity valuation disputes currently before
the High Court of England. Mr. Giddens has filed a motion with the United
States Bankruptcy Court for the Southern District of New York, the Honorable
Judge Martin Glenn presiding, seeking entry of an order approving the

Simultaneously, Mr. Giddens and the Chapter 11 Trustee for MF Global Holdings
Ltd., et al, (MFGH), Louis J. Freeh, have agreed to resolve all claims between
their respective estates. Further, MFGH and MFGUK have agreed to resolve the
claims between their respective estates and the litigation commenced by MFGH
against MFGUK, subject to the satisfaction of certain conditions.

Combined, the agreements are expected to benefit customers and creditors of
the primary MF Global insolvency estates worldwide: MF Global Inc., MF Global
UK Ltd. and MF Global Holdings Ltd. The agreements, which are subject to
certain conditions being satisfied before they become effective, put in place
the key conditions needed for these estates to make significant distributions
by avoiding lengthy and costly litigation, providing additional certainty on
the total value of claims against the estates and reducing required reserves
held against such claims.

"These agreements are in the best interests of former customers and other
creditors and allow us to request court approval for significant additional
distributions for securities and commodities customers," said Giddens.
"Resolving complex issues with these entities marks a critical milestone in
administering the MF Global Inc. estate. The agreements could not have come
about without cooperation from all parties and the involvement of the
Securities Investor Protection Corporation, the Commodity Futures Trading
Commission and the Securities and Exchange Commission. We are now focused on
court approval, satisfying the conditions to the agreements and making
additional distributions."

"Our agreement with MF Global Inc. will clear important obstacles and allow us
to significantly reduce reserves that have blocked us from additional
distributions to the former customers and creditors of MF Global UK," Heis
said. "Mainly as a result of litigation, we have been able to distribute only
some 10 percent of the approximately US$2.5 billion that we have collected.
This settlement, if concluded, will allow a major escalation in this, and we
will move quickly to get money in agreed claimants' pockets at the earliest

MF Global Inc. and MF Global UK Ltd. Agreement

As a result of the agreement between MFGI and MFGUK, it is estimated that
between US$500 million and US$600 million would be ultimately returned to the
MFGI estate, depending on final payout rates from the MFGUK client money and
general creditor estates. Mr. Giddens anticipates the possibility of 100
percent satisfaction of allowed securities customers' claims and significant
additional distributions to commodities customers who traded on US exchanges
(4d funds) and commodities customers who traded on non-US exchanges (30.7
funds).  Mr. Giddens has filed an application for additional distributions
with the Bankruptcy Court.

The Joint Special Administrators will early in January produce a further
updated estimated outcome statement showing the projected position of MFGUK
post-settlement and an estimate of the increase in the client money
distribution percentage and the amount of an initial dividend. The Joint
Special Administrators will seek to pay as soon as possible after the
settlement becomes effective.

The Joint Special Administrators approached Mr. Giddens and his team with
substantial relevant information developed by KPMG and the management and
staff of MFGUK concerning the financial position of the MFGUK estate. This
allowed Mr. Giddens to conduct a detailed review, which determined there is
reasonable basis for the projected payments from MFGUK to MFGI, although the
ultimate amounts recovered are not guaranteed.

The parties are grateful for the cross-border cooperation between the staffs
of Mr. Giddens and the Joint Special Administrators at KPMG. The Joint
Special Administrators also have welcomed the assistance the Financial
Services Authority has provided throughout the special administration.

All currently pending litigation between MFGI and MFGUK will be temporarily
suspended to allow for completion of the agreement. The agreement is not an
admission of liability in relation to 30.7 issues before the High Court of
England, or any comment upon the merits of the 30.7 litigation or the legal
issues that arise in relation to it or in relation to the effect of Rule 30.7
of the United States Commodity Futures Trading Commission.

Conditions that must be completed before the agreement becomes effective
include the Bankruptcy Court making an order that (i) approves the settlement,
(ii) prohibits MFGI 30.7 customers from making or continuing claims against
MFGUK that are duplicative of claims made by MFGI, and (iii) requires 30.7
customers with allowed claims with a value of greater than $12,000 to give a
release in favor of MFGUK in respect of any duplicative claims as a condition
to receiving further payment from MFGI. The agreement is also conditional
upon MFGH withdrawing its litigation against MFGUK.

Contact: Media Contacts for MF Global Inc.: US: Kent Jarrell, +1-202-230-1833,
UK: James Acheson-Gray +44 772 520 6970; Media Contacts for MF Global UK Ltd.:
Margot Cowhig +44 7920 274856 or Mark Hamilton +44 7785 337672; Media Contact
for MF Global Holdings Ltd.: Jeffrey Goldberger, +1-212-896-1249
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