MF Global Holdings Ltd. (MFGLQ) filed new information about its proposed bankruptcy resolution, including details about the terms of $70 million in exit financing and plans to liquidate the company’s remains through a trust.
A trust agreement will oversee liquidation of the company’s remaining assets, including potential income from lawsuits. Andrew Shannahan of Knighthead Master Fund LP, Joe Kronsberg of Cyrus Capital Partners and Austin Saypol of Silver Point Capital LP will be the initial members of a committee that will select directors for the liquidating company’s board, according to court papers filed in Manhattan bankruptcy court today.
Those lawsuits include some by MF Global Holdings’ trustee, Louis Freeh, against MF Global’s UK unit, which is also winding down.
Lenders to the $70 million senior secured credit facility weren’t listed.
A rough outline of the company’s plan to repay creditors has been approved, and a hearing to consider the plan is set for April 5.
The plan was drawn up by banks and hedge funds including Citigroup Global Markets Inc. and Silver Point Capital, and revised with Freeh. New York-based JPMorgan Chase & Co., an MF Global creditor and arranger of a $1.2 billion loan, recently resolved its objection to the proposed plan.
MF Global filed the eighth-largest U.S. bankruptcy on Oct. 31, 2011, after getting margin calls and bank demands for money following its investment in the debt of troubled European economies. The company, which was headed by former New Jersey Governor Jon Corzine, listed assets of $41 billion and debt of $39.7 billion in its Chapter 11 filing.
Trustee James Giddens is separately liquidating the MF Global brokerage.
The case is In re MF Global Holdings Ltd., 11-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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