Saturday, December 10, 2011

Some of the more Hopeful MF Global News for Customers

From Futures Magazine:

The Trustee for MF Global's SIPA liquidation proceeding filed an omnibus reply to objectors yesterday in which he clearly defined customer property and affirmed the super-priority status of segregated customer funds that the CCC has sought since its inception.  The reply defines customer property as not only “all segregated funds, but also all property that was unlawfully converted and is property of the debtor’s estate, and if there is shortfall in customer segregated assets, all other property of the debtor’s estate.” The Trustee’s reply goes on to state that “there is virtually no scenario under which any property of MF Global’s estate would be treated as non-customer property in the event of commodity customer shortfall.”  Read the full reply here:
For the first time since the bankruptcy proceeding began, the Trustee has affirmed that commodity customers will have a right to claw back assets of MF Global’s estate in the event of a shortfall of funds.

Mr. Roe added:
We are closer to our stated goal of the return of 100% of customer segregated funds.

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