MF Global trustee initiates final 95% distribution to creditors

By Mark Reccek

Bethlehem, Pa., Sept. 8 – MF Global, Inc. (MFGI) liquidation trustee James W. Giddens initiated the final, cumulative 95% distribution on all non-affiliate, non-subordinated, allowed general unsecured creditor claims totaling $40.9 million, according to a Tuesday press release.

The final distribution onf non-affiliate, non-subordinated, allowed general unsecured creditor claims brings the total amount distributed to MFGI creditors to approximately $1.04 billion.

“I am very pleased to initiate the final distribution of the MF Global Inc. liquidation proceeding today," Giddens said in the release. “When this distribution is complete, unsecured creditors will have received a near full recovery, while customers and secured creditors are already completely satisfied.”

After the final unsecured creditor distribution is complete, Giddens will have distributed over $8.1 billion to MFGI customers and creditors, including:

• Customer claimants in the amount of $6.9 billion to cover 100% of allowed claims;

• Secured, administrative and priority general claimants in the amount of $35 million to cover 100% of allowed claims;

• Non-affiliate unsecured general claimants in the amount of $219 million to cover 95% of allowed claims; and

• Affiliate unsecured general claimants in the amount of $905 million on their allowed non-subordinated unsecured claims.

“The results achieved do not diminish the importance of the actual segregations failure that led to MFGI's collapse,” the release said. “Claims against former officers, directors and other employees of MF Global, including former MF Global CEO Jon Corzine, are ongoing in the multidistrict litigation.”

Giddens is represented by Hughes Hubbard & Reed LLP.

MF Global was a New York-based commodity and derivatives broker that filed for bankruptcy on Oct. 31, 2011 under the Chapter 11 case number 11-15059.

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