KPMG expects bigger payouts to MF Global UK clients
LONDON (Reuters) - MF Global UK's MFGLQ.PK administrator KPMG said it expected to increase payments to some clients of the collapsed broker after key disputes with its U.S. parent were resolved last month.
As a result of money changing hands during MF Global's chaotic collapse, various company affiliates have been fighting over who owes whom.
In December, the trustee for the MF Global estate said an agreement had been reached between the firm's former British affiliate and parent company MF Global Holdings which should accelerate payouts to clients and creditors.
The agreements, which are conditional on several factors including U.S. Bankruptcy Court approval, would see payouts to customers with segregated accounts rise to around 60 cents in the dollar from 26 cents, KPMG said on Tuesday.
An initial payment of around 20 pence in the pound was also now expected to be made to unsecured creditors, it said.
"The U.S. agreements, if the conditions are met, will remove some of the larger obstacles to returning funds to customers. this will allow payment of the distributions set out today and pave the way for further distributions from both pools over the course of the year," KPMG's Richard Heis said.
MF Global used customer money to plug liquidity gaps before it filed for bankruptcy in 2011, creating a gap of more than $1.5 billion in customer accounts, according to a report by its trustee.
A U.S. Bankruptcy Court hearing, the first step toward getting the British agreement approved, is scheduled for January 31.
(Reporting by Kylie MacLellan; Editing by Dan Lalor)
- Tweet this
- Share this
- Digg this
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.