We refer to our update statement of 16 April 2018. This update concerns the application issued by the Joint Special Administrators and Joint Supervisors on 22 March 2018 seeking directions from the Court regarding the implementation of the CVA (the “CVA Directions Application”). Please find here a copy of the CVA Directions Application notice and a copy here of the sealed order for your information.

The substantive hearing in respect of the CVA Directions Application took place from 14 May 2018 to 17 May 2018 before Mr. Justice Hildyard.  Submissions were made on behalf of the following:

• the Joint Special Administrators and Joint Supervisors as the applicants;
• Attestor Value Master Fund LP, acting by its investment manager, Attestor Capital LLP (collectively, “Attestor”), as representative respondent for those creditors (primarily the Participating Creditors) who would like the CVA not to be implemented and/or to be terminated; and
• the Financial Services Compensation Scheme Limited (“FSCS”), as representative respondent for those creditors (primarily the Exiting Creditors) who would like the CVA to be implemented and not terminated.

The judgment was handed down on 25 May 2018 and will be available once it has been finalised and approved by the Court.

In summary, Mr. Justice Hildyard favoured the position adopted by the FSCS and has directed that:

• the Special Administrators should confirm that the CVA is not precluded from becoming effective in accordance with the condition precedent at clause 3.1(e) of Section 2 of the CVA in light of the Disputed Claims (as defined in the sealed CVA Directions Application notice);
• the Joint Supervisors should not waive the condition precedent at clause 3.1(e) of Section 2 of the CVA; and
• the Joint Supervisors should not determine that the Disputed Claims are a material impediment to the implementation of the CVA and terminate the CVA pursuant to clause 27.1(c) of Section 2 of the CVA.

Mr. Justice Hildyard also granted Attestor permission to appeal the judgment on all grounds and the draft order provides for the following timetable in respect of filing of such appeal:

• Attestor shall file its appellant’s notice by 4pm on 29 May 2018; and
• the FSCS shall file any respondent’s notice by 4pm on 31 May 2018.

In accordance with the above timetable, Attestor filed its notice of appeal yesterday at the Court of Appeal.

Given that Attestor have appealed the first instance judgment, the Special Administrators have agreed not to provide the confirmation required under clause 3.1(e) of Section 2 of the CVA until after 1 June 2018.

If you are a creditor of MF Global UK Limited (in special administration) and would like to contact your appropriate representative respondent's solicitors to discuss the CVA Directions Application or the appeal by Attestor, please contact:

• For Attestor Value Master Fund LP: Allen & Overy LLP, Bishops Square, London E1 6AD, contact Katrina Buckley at katrina.buckley@allenovery.com or Marc Florent at marc.florent@allenovery.com.
• For Financial Services Compensation Scheme Limited: Burges Salmon LLP, 6 New St Square, London EC4A 3BF, contact Emily Scaife at emily.scaife@burges-salmon.com.

If you have questions or concerns about the CVA Directions Application or the appeal by Attestor generally, please contact the Joint Special Administrators/Joint Supervisors at mfglobalclaims@kpmg.co.uk.