MF Global Trustees, Administrators Agree to Resolve All Claims
The trustee liquidating the failed MF Global Inc. brokerage reached an agreement with the administrator of MF Global’s U.K. unit to resolve all claims between the entities.
The agreement calls for $500 million to $600 million to be returned to MF Global from the U.K. unit, depending on the final payout from the U.K. client money and creditor estates, the companies said in a statement. Spokesman Kent Jarrell said they were originally seeking $700 million.
Trustee James W. Giddens has filed for approval of the agreement with the U.S. Bankruptcy Court in Manhattan.
In addition, Giddens and Louis J. Freeh, Chapter 11 trustee for MF Global Holdings Ltd. (MFGLQ), agreed to resolve all claims between their respective estates.
Giddens has paid U.S. and foreign customers about $4.9 billion since the firm failed 13 months ago, and has $1.2 billion in hand, out of $1.4 billion in remaining assets, according to data through Oct. 31 included in a report filed in U.S. Bankruptcy Court in Manhattan.
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