On November 29, the Office of the Trustee for the Liquidation of MF Global Inc. released the following statement:
New York, New York – James W. Giddens, the Trustee for the liquidation of MF Global Inc., today filed an expedited motion with the United States Bankruptcy Court for the Southern District of New York seeking approval of a bulk transfer and distribution of up to $2.1 billion to former MF Global Inc. commodities customers, which should restore two-thirds or more of US segregated customer property to all commodities customers on a pro rata basis.
After evaluating the current state of the MF Global Inc. estate, the Trustee determined that this bulk transfer is consistent with his duties under the Securities Investor Protection Act to identify and marshal assets available and to maximize the estate for all stakeholders in an orderly and fair process. This bulk transfer will also further the Trustee’s goal to return as much customer property as possible, as quickly as possible, in a manner that is fair to all customers and that is consistent with the law.
The proposed third bulk transfer will complement the first two bulk transfers and the expedited claims process that were approved by the Bankruptcy Court earlier this month. The approval of this bulk transfer will mean that approximately $4.1 billion will have been distributed to former customers of MF Global Inc.