MF Global U.K. Clients, Creditors May Receive $3.2 Billion
MF Global Holdings Ltd. (MFGLQ)’s U.K. administrators may return as much as $3.2 billion for creditors of the failed broker, KPMG LLP said in an e-mailed statement.
Claims outstanding on the available funds could total as much as $3.9 billion, KPMG said. The administrator estimated there would be a minimum of $2.8 billion available to settle the claims against the defunct broker’s estate.
“In determining the claims, we are working to discount those we believe to be duplicative or spurious,” KPMG partner Richard Heis said in the statement. “There are still numerous work streams to be worked through but this estimated guide shows that there are circumstances where a full pay out is possible.”
MF Global Holdings, the U.K. unit’s parent company, filed the eighth-largest U.S. bankruptcy on Oct. 31 after getting margin calls and bank demands for money at its MF Global Inc. brokerage. The funds at the London-based unit are also being sought by the trustee overseeing the U.S. bankruptcy, which may reduce any recovery by U.K. creditors.
To contact the reporter on this story: Ben Moshinsky in London at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at email@example.com