MF Global Customer EMC Asks Judge to Modify Transfer Order to Allow Cash

A customer of bankrupt broker-dealer MF Global Inc. challenged a judge’s order allowing the transfer of about 50,000 accounts to other brokerages.

U.S. Bankruptcy Judge Martin Glenn in New York yesterday granted a request by liquidation trustee James W. Giddens to permit the transfer of “certain segregated customer commodity positions,” according to court papers.

EMC Master Fund Ltd., an MF Global customer based in the Cayman Islands, filed an emergency motion yesterday seeking a modification of Glenn’s order to also allow the transfer of the accounts’ cash collateral. Unless the cash transfer is allowed, no other broker will accept the account, EMC said.

“All of the funds in the accounts represent the funds deposited by the EMC Master Fund,” the firm said.

MF Global Holdings Ltd., the brokerage’s New York-based parent company run by former New Jersey Governor Jon Corzine, sought bankruptcy protection from creditors Oct. 31 after making bets on European sovereign debt. The firm listed liabilities of $39.7 billion and assets of $41 billion in Chapter 11 papers.

The case is MF Global Holdings Ltd. (MF), 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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