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MF Global Customer EMC Seeks Transfer of Cash With Accounts

Nov. 3 (Bloomberg) -- A customer of bankrupt broker-dealer MF Global Inc. asked a judge to modify his order allowing the transfer of about 50,000 accounts to other brokers to include cash collateral.

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 asking Glenn to also allow the transfer of the accounts’ cash collateral. No other broker will accept the accounts without the cash transfer, said EMC, a commodity fund run by EMC Capital Management Inc.

EMC asked for permission to move an MF Global account to Peregrine Financial Group Inc., saying “swift judicial action” is needed or the fund “will likely suffer increased harm and damage,” according to a court filing.

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., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporters on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net; Linda Sandler in New York at lsandler@bloomberg.net

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

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