MF Global Singapore, Centro Assets, Madoff Europe: Bankruptcy
Stock Chart for Federation Centres Ltd (CRF)
KPMG, the provisional liquidator for MF Global Holdings Ltd.’s Singapore unit, took control of another $142 million of customers’ segregated funds, bringing the total to $322 million, according to a statement.
The provisional liquidators are looking at partially releasing customers’ segregated funds’ soon, said Bob Yap, head of transactions and restructuring at KPMG in Singapore.
Centro Chief Tsenin Says He’s Been Told of Potential Suitors
Centro Properties Group (CNP) Chief Executive Officer Robert Tsenin said he’s been informed of potential suitors after the Australian company won final court approval for a plan to wipe out debt and hand assets to creditors.
“Nobody has formally approached me for some time with anything, but I hear through back channels that people are interested,” Tsenin said on a call with reporters. “Now it’s up to the directors to consider anything that anybody should propose. I’d be surprised if people aren’t looking at our assets.” Centro isn’t a “distressed seller,” he said.
Under a reorganization approved by the Supreme Court of New South Wales, A$2.7 billion ($2.76 billion) of senior debt maturing Dec. 15 will be canceled and senior lenders will receive Centro’s Australian assets, the company said.
Centro first announced a planned restructuring in 2009 after a debt-fueled U.S. buying spree backfired with the global financial crisis. Share and debt holders of Centro Properties and listed unit Centro Retail Trust approved a proposal to give lenders control of the new Centro Retail Australia trust in exchange for forgiving debt.
Madoff Associate Kohn Has $42 Million Frozen by U.K. Judge
A London judge froze 27 million pounds ($42 million) of Sonja Kohn’s assets and ordered the former business partner of Bernard Madoff to move funds to the U.K. as the administrators of Madoff’s European operation seek recoveries for victims of his fraud.
Judge Julian Flaux said Kohn should repatriate as much of the 27 million pounds as possible to the U.K. within 56 days, adding it may be at risk as a result of “the nature of the wrongful conduct which is alleged against her.”
The former chairwoman of Bank Medici AG, according to a prior ruling from Flaux, made at least $56 million introducing clients to Madoff, who pleaded guilty in 2009 to using money from new investors to pay off old ones in a Ponzi scheme, sparking investigations and dozens of lawsuits. He is serving 150 years in prison in North Carolina for the fraud that caused his New York-based firm to collapse in December 2008.
“This freezing order is a routine measure for such cases under English procedures and it is actually a good result in light of the entire case,” her lawyer, Clemens Trauttenberg, said by phone from Vienna.
Liquidators of Madoff’s estate are pursuing Kohn and the directors of Madoff Securities International Ltd., the company’s English unit, for the return of assets.
Manroland Secures 55 Million-Euro Credit to Stay in Business
Manroland AG, the German printing-machinery maker that filed for insolvency on Nov. 25, secured a so-called mass credit for 55 million euros ($74 million) to continue operations.
“The company can continue to do business with customers and suppliers, and we are sending a very positive signal to the market,” Werner Schneider, the manufacturer’s provisional insolvency administrator, said in a statement.
The move is the second step to help Manroland stay in business following an agreement for Germany’s Federal Labor Agency to pay the company’s wages, said Thomas Hauser, a spokesman at the Offenbach-based printing-machine maker.
Next Battersea Station Owner May Have to Commit $1.1 Billion
Battersea Power Station’s next owner may have to commit 700 million pounds to the derelict London development site before any construction work can be started.
Creditors led by Lloyds Banking Group Plc (LLOY) and Ireland’s National Asset Management Agency will try to recover the entire 502 million pounds owed by the project’s owner by selling the site or the debt, according to two people familiar with the matter. The existing plan also includes a commitment to contribute more than 200 million pounds toward extending a London Underground subway line.
The development is effectively up for sale now because Lloyds and NAMA want to avoid the cost of putting the owner into administration, said the two people, who asked not to be identified because the information isn’t public. On Nov. 29, the creditors called in loans to the project’s owner, Battersea Power Station Shareholder Vehicle Ltd. They are scheduled to ask a judge on Dec. 12 to appoint an administrator to sell the site.
Lloyds and NAMA have rejected a 262 million-pound bid from Malaysian developer SP Setia Bhd. (SPSB) because they were holding out for full repayment of the 324 million pounds they are owed, according to the people. Another 178 million pounds is owed to Oriental Property Ltd., controlled by former power station owner and Hong Kong entrepreneur Victor Hwang.
The 38-acre (15-hectare) site was valued at 500 million pounds, controlling shareholder Real Estate Opportunities Plc (REO) said on Oct. 26. REO was given planning consent a year ago for a 5.5 billion-pound redevelopment of the site, which is 2.2 miles (3.5 kilometers) by car from the Houses of Parliament.
To contact the reporter on this story: Lindsay Fortado in London at email@example.com
To contact the editor responsible for this story: Anthony Aarons at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.