MF Global trustee's cash collateral use extended to March 31, 2013

By Caroline Salls

Pittsburgh, Aug. 30 - MF Global Holdings Ltd.'s Chapter 11 trustee has entered into a stipulation with JPMorgan Chase Bank, NA under which the trustee's period for using cash collateral has been extended, according to an Aug. 29 filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the outside termination date for the trustee's use of cash collateral was extended to March 31, 2013 from Sept. 30 under the stipulation.

Within five days of a court order approving the stipulation, JPMorgan will receive a payment of $606,062 in unrestricted cash to reduce the principal amount of its setoff claim.

In addition, a $500,000 limit for reimbursement of JPMorgan's fees and expenses has been increased to $750,000.

A hearing is scheduled for Sept. 6.

MF Global Holdings, a New York-based commodity and derivatives broker, filed for bankruptcy on Oct. 31, 2011. Its Chapter 11 case number is 11-15059.

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