James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), is commencing the process of sending out $551 million in distributions to general creditors who have made allowable claims against the MFGI estate.
The secured claims consists of mainly employee wage priority claims and CME Group claims; the unsecured general creditor claims include claims filed by introducing brokers, trade vendors, employees, and others according to the spokesman.
The Trustee is proposing to distribute $295 million to holders of secured, administrative, priority and unsecured general claims. The Trustee is also seeking to establish a reserve of $462 million on account of unresolved claims
A broad agreement among the various entities administrating the MF Global bankruptcy was announced Saturday morning that resolves existing claims among the competing interests and will expedite additional distributions to former MF Global customers and claimants
MF Global Holdings Ltd.’s U.K. administrators won the first round of a dispute with its New York brokerage arm over the value of internal trades used by the company to bet on distressed European sovereign debt.