MF Global Investors to Receive $500 Million-$600 Million
Between $500 million and $600 million will be returned to the MF Global Inc. estate and fully satisfy investor claims under an agreement between James W. Giddens, trustee for the Securities Investor Protection Act liquidation of the company, and Richard Heis, a joint administrator of MF Global UK Ltd.
Separately, Giddens and the Chapter 11 Trustee for MF Global Holdings Ltd., Louis J. Freeh, said that they will resolve all claims between their respective estates.
Once certain conditions and court approvals are satisfied to make the agreements effective, Giddens anticipates the agreement between MFGI and MFGUK will fully satisfy allowed securities customers' claims and significant additional distributions to commodities customers who traded on U.S. and non-U.S. exchanges.
MF Global went bankrupt in the fall of 2011. Former New Jersey Gov. Jon Corzine was the company's CEO. According to The New York Times, a federal investigation found that up to $600 million-$1.6 billion of customer money could not be accounted for in the company’s collapse after the disclosure of some heavily leveraged international debt purchases that drove off investors and caused steep declines in its ratings.