MF Global trustee reports more than $3 billion of potential claims

By Caroline Salls

Pittsburgh, June 5 - MF Global Holdings Ltd.'s Chapter 11 trustee said more than $3 billion of claims have been filed against former affiliates, according to a status report for the period of Oct. 31, 2011 through June 4 filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Chapter 11 trustee Louis J. Freeh said the potential recoveries for the MF Global debtors' creditors will come primarily from recoveries on account of those claims.

The trustee said in his 119-page status report that another potential source of value for the debtors' estates is through litigation.

Freeh said his investigation into potential claims and causes of action is in its early stages, and he will provide details to the court as the investigation progresses.

Claim breakdown

According to the report

• The debtors' estates filed 68 claims against MF Global Holdings totaling $2.318 billion;

• 58 securities and futures claims totaling $646.8 million were filed against MF Global Holdings by the debtors and their non-debtor affiliates;

• 10 general unsecured claims totaling $1.671 billion have been filed against MF Global Holdings, including $600 million of subordinated debt claims;

• 10 claims totaling $446.4 million to $563.8 million of claims have been filed against MF Global U.K. Ltd. by the debtors and their non-debtor affiliates;

• Three claims totaling $346.72 million have been filed against MF Global Finance Europe Ltd. by the debtors and their non-debtor affiliates;

• Three claims totaling $5.82 million have been filed against MFG Overseas by the debtors and their non-debtor affiliates;

• Four claims totaling $1.39 million have been filed against Australian entities by the debtors and their non-debtor affiliates;

• Five claims totaling $1.22 million have been filed against MF Global Canada Co. by the debtors and their non-debtor affiliates;

• Four claims totaling $1.18 million have been filed against the MF Global Group's Hong Kong operations by the debtors and their non-debtor affiliates;

• Seven claims totaling $832,531 have been filed against the MF Global Group's Indian operations by the debtors and their non-debtor affiliates;

• Four claims totaling $739,777 have been filed against MF Global FXA Securities Ltd. by the debtors and their non-debtor affiliates;

• One $55,400 claim has been filed against MF Global Mauritius Pvt Ltd. by the debtors and their non-debtor affiliates; and

• Three claims totaling $26.51 million have been filed against MF Global Singapore Pte. Ltd. by the debtors and their non-debtor affiliates.

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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