MF Global UK Ltd update to statement of 05 June 2018 and notice of non-satisfaction of the condition precedent by the Administrators.
Mike Pink, Ed Boyle and Richard Heis, the Joint Special Administrators of MF Global UK Limited (in special administration) (‘MFGUK’) and the Supervisors of the Company Voluntary Arrangement (‘CVA’) approved by creditors on 12 December 2017, have issued a notice in their capacity as Administrators, confirming that the CVA is precluded from becoming effective following directions handed down today by the English Court of Appeal. Please find here a copy of the notice of non-satisfaction of the condition precedent by the Administrators.
A joint application by the Supervisors / Administrators to the High Court for directions, and the subsequent appeal to the Court of Appeal, was necessary given the receipt of a material unknown contingent claim which emerged just prior to the 15 January 2018 bar date set out in the CVA. Following the directions from the Court and the notice subsequently issued by the Administrators, the CVA will automatically terminate on 12 June 2018 being the long-stop date agreed by creditors. The Court of Appeal, after hearing submissions by representative creditors for and against implementation (the Administrators and the Supervisors remaining neutral), considered that the fairest outcome, in light of the emergence of the new claim, would be for the CVA to be precluded from becoming effective. Please find here a copy of the Appeal Court Judgment.
The new claim is disputed and was rejected by the Administrators, but is subject to an appeal.
Following the termination of the CVA the Administrators will continue to wind down the estate of MFGUK and look for ways to improve the outcome for all creditors.