SIPC: MF Global Agreements Should Result In 100 Percent Return Of Allowed
Securities Customer Property
WASHINGTON, Dec. 28, 2012
If Conditions Met and Agreements Approved by the Court, Trustee Anticipates
Significant Additional Distributions to Commodities Customers Trading on US,
WASHINGTON, Dec. 28, 2012 /PRNewswire-USNewswire/ --Between $500 million and
$600 million dollars will be returned to the MF Global Inc. (MFGI) estate
under an agreement announced by James W. Giddens, trustee for the Securities
Investor Protection Act (SIPA) liquidation of MFGI, and Richard Heis, a joint
administrator of MF Global UK Ltd. (MFGUK).
Separately, Giddens and the Chapter 11 Trustee for MF Global Holdings Ltd.
(MFGH), Louis J. Freeh, announced that they will resolve all claims between
their respective estates.
Once certain conditions are satisfied to make the agreements effective and if
approved by the United States Bankruptcy Court for the Southern District of
New York, Giddens anticipates the agreement between MFGI and MFGUK will result
in 100 percent satisfaction of allowed securities customers' claims and
significant additional distributions to commodities customers who traded on US
and non-US exchanges.
SIPC President Stephen Harbeck said: "These agreements are a major
accomplishment that will benefit customers and creditors worldwide.Not only
will the agreements with MFGH and MFGUK likely allow for the return of 100
percent of allowed securities customers claims, it will also result in
significant distributions to be made to commodities customers. SIPC commends
the efforts of Trustee Giddens, Mr. Heis and Mr. Freeh, whose work has yielded
agreements in the best interests of all creditors that will minimize legal
costs and allow for an expeditious resolution of all open matters."
Harbeck added: "SIPC looks forward to continuing to work with the Trustee and
other parties to make sure all conditions are met and the agreements
areapproved by the Court, so that thedistributions of funds to customers can
Full details on the agreements can be found at mfglobaltrustee.com.
The Securities Investor Protection Corporation is the U.S. investor's first
line of defense in the event of the failure of a brokerage firm owing
customers cash and securities that are missing from customer accounts. SIPC
either acts as trustee or works with an independent court-appointed trustee in
a brokerage insolvency case to recover funds.
The statute that created SIPC provides that customers of a failed brokerage
firm receive all non-negotiable securities - such as stocks or bonds -- that
are already registered in their names or in the process of being registered.
At the same time, funds from the SIPC reserve are available to satisfy the
remaining claims for customer cash and/or securities held in custody with the
broker for up to a maximum of $500,000 per customer. This figure includes a
maximum of $250,000 on claims for cash. From the time Congress created it in
1970 through December 2010, SIPC has advanced $ 1.6 billion in order to make
possible the recovery of $ 109.3 billion in assets for an estimated 739,000
All non-media/investor inquiries of SIPC should be directed to
email@example.com or (202) 371-8300.
SOURCE Securities Investor Protection Corporation, Washington, D.C.
Contact: Ailis Aaron Wolf, for SIPC, +1-703-276-3265, firstname.lastname@example.org
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