MF Global Trustees Reach Agreements: Reports
NEW YORK (TheStreet) -- Officials in charge of liquidating various parts of MF Global have reached two agreements that are likely to speed up payments to customers and creditors of the failed brokerage, according to published media reports.
In a statement, James Giddens, the trustee in charge of liquidating MF Global's brokerage unit, said he had reached separate agreements to settle disputes with its former U.K. affiliate and with MF Global's holding company, according to a Reuters report.
Giddens estimated that the agreement with the U.K. affiliate could bring $500 million to $600 million to the MF Global estate, Reuters said.
MF Global, which was headed by former New Jersey Gov. Jon Corzine, collapsed in October 2011. When the company filed for bankruptcy -- the eighth largest in U.S. history -- there was a $1.6 billion shortfall in customer accounts.
Because the collapse was so sudden, there was a plethora of conflicting claims, which the various units had been disputing.
"Resolving complex issues with these entities marks a critical milestone in administering the MF Global Inc. estate," Giddens said in the statement, according to The Wall Street Journal.
The agreements still require bankruptcy court approval, and the estate has a hearing scheduled for Jan. 31, 2013, which could lead the way to the U.K. agreement being approved, Reuters said.