Richard Heis, joint special administrator of MF Global UK and restructuring partner at KPMG, commented on the six month progress report on activity date.
The special administrators of MF Global UK have published a six month progress report on activity to date, in accordance with statutory requirements.
Richard Heis, joint special administrator of MF Global UK and restructuring partner at KPMG, commented:
“In excess of 100 professionals from KPMG have worked closely with over 700 MF Global staff on the MF Global UK special administration over the past six months. The KPMG team is led by experienced restructuring specialists but we have also brought in forensic accountants, tax specialists, ex brokers, IT specialists and auditors to help unpick this complex case. Amongst the numerous work streams, we have liquidated 1.6m open futures and options positions and negotiated with over 100 counterparties, such as exchanges, clearing houses and banks around the world, for the return of over $2bn of segregated and non-segregated funds. Additionally, we have sold five businesses and shareholdings, generating $40m for the estate. We have also re-established connectivity with approximately 50 settlement banks and central counterparties to help us reconcile the balance sheet; book liquidation trades and send statements to 6,000 clients.
“Amongst the many tasks in hand, we are looking to progress the disputed $639m claimed by MF Global Inc in the English courts next month. Unfortunately resolving a dispute over such a large claim against the segregated pot is likely to have a material impact on our ability to make further distributions to segregated clients. However, in the meantime, we are making headway in ensuring funds are returned: working with the Financial Services Compensation Scheme has seen 250 clients receive compensation payments to date and a further 400 will be paid imminently; around 850 clients have received $90m in our first interim client money distribution and a draft distribution plan for client assets will be presented to court next month.”
Returning client monies/assets
The full progress report is available at: www.kpmg.co.uk/mfglobaluk.
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For further information please contact:
Sorrelle Cooper, KPMG
T: +44 20 7694 8527
M: +44 7932 078218
Katy Broomhead, KPMG
T: +44 161 8384623
M: +44 7824537963
KPMG Press Office : 020 7694 8773
Notes to Editors:
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed joint special administrators of MF Global UK Limited, a UK based broker-dealer business, and MF Global UK Services Limited, which provides employee and pension services in relation to the UK operations, at 5pm on Monday 31st October 2011. MF Global UK Limited is a wholly owned subsidiary of MF Global Europe Limited which in turn is a subsidiary of MF Global Holdings Limited, a company incorporated in Delaware, USA, which filed for chapter 11 bankruptcy protection on 31st October.
The objectives of the administration are:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed as the "Joint Special Administrators" of MF Global UK Limited following an application to the High Court in London by the directors of MF Global UK Limited on Monday 31 October 2011.
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.