MF Global U.K., A-Tec Unit Offer, Manroland Bidders: Bankruptcy
MF Global’s U.K. administrators said they hoped to return some money to the collapsed broker’s clients by March.
Once a claim is approved, funds can be distributed to MF Global U.K. Ltd.’s clients within 14 days, KPMG LLP said in an e-mailed statement. While it didn’t set a final deadline for claims, KPMG has asked clients to submit claims for money and assets held by MF Global by March 30.
The proportion of client money paid out depends on how much is returned by other institutions, KPMG joint special administrator Richard Heis said.
MF Global Holdings Ltd., the New York-based holding company, sought bankruptcy protection Oct. 31 in the U.S. when bets on European debt soured. The company listed debt of $39.7 billion and assets of $41 billion in court papers. MF Global’s U.K. unit followed its parent into administration on Oct. 31.
The broker’s U.K. customers had their funds frozen and put in a client money pool when it collapsed.
“Putting a timeline into place creates an important framework for the return of client assets and client money,” said Heis. “This helps to create certainty around the number and size of claims with the intention of allowing a return of a proportion of client funds before March 30.”
There may be more than $1.2 billion missing from MF Global Inc.’s customer accounts in the U.S., according to the company’s court-appointed trustee James Giddens. The CFTC and the Securities and Exchange Commission are investigating cash movements at the firm before the bankruptcy filing.
KPMG has “not seen signs in MFGUK of any similar issues,” joint special administrator Mike Pink said in a letter to the broker’s clients on Nov. 23.
Russian brokerages may lose more than $100 million of funds frozen on the accounts of MF Global Holdings Ltd., which filed for bankruptcy in the U.S., Vedomosti reported, citing people it didn’t name.
Brokerages including Broker Credit Service and KIT Finance worked with MF Global, the Moscow-based newspaper said.
Ivan Samoylenko, a spokesman at Broker Credit Service, said the company transferred part of its clients’ money from MF Global to another brokerage and expects to transfer the rest early next year. Alexander Svintsov, CEO of Kit Finance Brokerage, couldn’t be reached immediately for comment.
Penta Investments Files Bid for Minerals & Metals Unit of A-Tec
Penta Investments Ltd., a Czech and Slovak private equity group, filed a bid for the minerals and metals unit of bankrupt Austrian engineering group A-Tec Industries AG (ATEC), according to spokesman Martin Danko.
“We filed a bid for the unit,” Danko said in a phone interview without providing further comment.
A-Tec administrator Matthias Schmidt exercised his right to start liquidating the group after it failed to raise by Sept. 30 funds required under a restructuring agreed with creditors last year. Schmidt is seeking to sell all of A-Tec’s assets and pay out the proceeds exclusively to creditors.
The administrator sold 98 percent of its ATB electric drive unit to China’s Wolong Investment GmbH, a subsidiary of the Asian nation’s Wolong Group, on Oct. 19.
Capvis Equity Partners Not Interested in Buying Manroland Units
Switzerland’s Capvis Equity Partners AG said it dropped a plan to invest in Manroland AG, the German printing-press maker that filed for insolvency.
Capvis dropped its plan because of “differing ideas” about the company’s future direction, Capvis partner Daniel Flaig said in a statement. The talks had started in September, the firm said.
The administrator of Manroland AG said a number of unidentified investors had expressed interest in the company, Financial Times Deutschland reported.
Insolvency administrator Werner Schneider said it may be easier to dismantle the company and sell it in smaller parts, the newspaper said, citing an interview.
The administrator wants to present new investors by the time the formal insolvency proceedings begin on Feb. 1, the newspaper said.
Seat Pagine Investors, Bondholders See Progress in Restructuring
Seat Pagine Gialle SpA (PG) investors and “Lighthouse” bondholders said in a statement that progress has been made in restructuring the company.
The boards of Permira Funds and Alfieri Associated Investors back the restructuring plan, according to the statement, saying that existing investors would get 10 percent of the company’s equity and Lighthouse bondholders the remainder.
Existing shareholders would also be eligible for two tranches of warrants under the plan, according to the statement.
“The decision to pay the 30 Oct. coupon remains in the sole discretion of Seat’s board of directors,” according to the statement.
Monte Paschi Investor in Talks With Bank Creditors on Collateral
Fondazione Monte dei Paschi di Siena, which owns 48.4 percent of the bank, said “negotiations with lending institutions, aimed at redefining the structure of collateral pledged on existing contracts, are at an advanced stage,” according to a statement from the banking foundation.
The foundation is renegotiating collateral for two loans totaling 1.1 billion euros ($1.47 billion) guaranteed with shares of Monte Paschi because the price of the stock on Nov. 25 breached the minimum of 23 cents set by the banks, two people with knowledge of the matter said.
The foundation borrowed 600 million euros from 11 banks led by JPMorgan Chase & Co. (JPM) in June to participate in Monte Paschi’s rights offer, according to the people, who asked not be named because the contract isn’t public. The amount of shares given as collateral is no longer sufficient because of the stock’s decline, they said.
Powerchip Seeks to Sell Factory to Meet Creditors’ Requests
Powerchip Technology Corp. (5346) seeks to sell one of its factories to satisfy creditors’ requests as part of discussions to extend loan payments, Eric Tang, a spokesman for the Hsinchu, Taiwan-based company said by phone.
“There’s currently no potential buyers,” Tang said. He declined to comment on which companies it’s held talks with to sell the facility.
Talks with creditors are ongoing with no final conclusions or timeline for completing a deal, he said. Powerchip plans to sell its P3 factory, which is equal to one-third of the company’s capacity for making chips on 12-inch wafers, Tang said. Powerchip operates three factories using 12-inch wafers, and one for older 8-inch wafers, he said.
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