Legal News

Freeh Plans to Help MF Global Customers Get All or Most of Their Money Back
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Friday, MF Global trustee Louis Freeh filed a plan in the U.S. Bankruptcy Court incorporating most recent financial data and creating the plan in cooperation with a group of unsecured creditors led by Silver Point Capital, Knighthead Capital and Cyrus Capital Partners.

Freeh’s plan has met with approval mostly from unsecured creditors, and proposes to divide up MF Global’s assets in a manner that could mean full payback for MF Global traders whose money were put on hold with the company filing for bankruptcy.

Freeh believes that MF Global’s U.S. broker-dealer unit can have up to a $120 million surplus, but could also end up with a $6 million shortfall. But according to those affected, that is an insignificant amount compared to the $1.6 billion loss that customers thought they might have to face when the company went bankrupt.

  
What
Where


However, Freeh’s plan, which is built on the latest available financial data is less certain of things as much as a plan issued last month by the group of unsecured creditors who projected “payment in full.” While the earlier plan had envisaged unsecured creditors recovering between 11.5 percent to 41.5 percent of their claims, Freeh’s plan considers a recovery range between 13.4 percent and 38.9 percent for unsecured creditors.

In the updated proposal, JPMorgan Chase & Co will get back all of its $7.8 million secured setoff claims against MF Global, though an unsecured liquidity facility of JPMorgan would recover the same as other unsecured creditors with regard to its $1.15 billion claim.

Freeh’s new plan to sort out the MF Global recovery and distribution will go for approval before Judge Martin Glenn in the U.S. Bankruptcy Court in Manhattan on 14 February.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The bankruptcy is In re MF Global Holdings Ltd, U.S. Bankruptcy Court, Southern District of New York, No. 11-15059.





 

RELEVANT JOBS

CA Probate / Trust Administration

USA-CA-San Diego

We have an attorney who is looking for CA licensed / experienced attorney who can prepare probate fi...

Apply now

Paralegal for Midtown Real Estate Firm

USA-NY-New York City

Responsibilities include: Handle all duties related to closing documents including: deeds, mem...

Apply now

Litigation Attorney - Employment

USA-CA-San Francisco

Employment group of SF trial boutique firm, Allen Glaessner Hazelwood & Werth LLP, seeks a talented ...

Apply now

Litigation Associate

USA-CA-San Francisco

Allen, Glaessner, Hazelwood & Werth LLP, a firm specializing in defending public entities, is seekin...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Housing Finance Associate Attorney

USA-MN-Minneapolis

Minneapolis office of a BCG Attorney Search Top Ranked Law Firm seeks a housing finance associate at...

Apply Now

Senior Intellectual Property Litigation Associate Attorney

USA-PA-Philadelphia

Philadelphia office of a BCG Attorney Search Top Ranked Law Firm seeks a senior intellectual propert...

Apply Now

Senior Intellectual Property Litigation Associate Attorney

USA-GA-Atlanta

Atlanta office of a BCG Attorney Search Top Ranked Law Firm seeks a senior intellectual property lit...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top