Former MF Global client asks court to release funds as child support

By Caroline Salls

Pittsburgh, Feb. 7 - Former MF Global client Adam Furgatch has asked the U.S. Bankruptcy Court for the Southern District of New York to treat MF Global Holdings, Ltd. as a "person" instead of a corporation, according to a Furgatch news release.

Furgatch's motion claims that because the U.S. Supreme Court has ruled that a corporation such as MF Global Holdings is a "person," then subsidiary brokerage MF Global, Inc. is a "child" of the MF Global Holdings parent company.

Furgatch said the filing cites specific Bankruptcy Code statutes that mandate that a child's support claims must have super-priority status over all other unsecured creditors.

"If corporations are persons, JP Morgan Chase and all other unsecured creditors will just have to get in line...the child comes first," Furgatch said.

The motion also asks the court to order parent company trustee Louis Freeh to immediately release all child support funds needed to restore the stricken, injured "brokerage child person" to health from the parent company's declared $41 billion in assets.

The child support funds being requested include the reported $1.2 billion in customer segregated funds that have yet to be returned to the ex-MF Global Brokerage customers.

Furgatch said he is currently missing at least 30% of his pre-bankruptcy MF Global account funds.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.