MF Global Holdings Trustee Freeh Seeks Creditor Priority
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MF Global Holdings Ltd.’s creditors should have some priority to be repaid by the bankrupt estate, said Chapter 11 trustee Louis Freeh, citing intercompany loans made between the failed parent and its operating unit.
Freeh, representing the interests of creditors of the parent company, commented on the legal principles that will govern repayments in papers filed late yesterday in Manhattan bankruptcy court. Former customers of the broker-dealer unit, seeking an estimated $1.2 billion missing from their accounts, are being repaid in a related case overseen by a different trustee, James Giddens, appointed under the Securities Investor Protection Act.