MF Global $500 Million Pact Heralds Customer Payments
This article is for subscribers only.
MF Global Inc. settled a legal dispute with a U.K. affiliate in a deal that will bring the failed brokerage $500 million to $600 million, allowing it to pay customers more money after a judge approves the settlement, a trustee said.
Announcing the agreement today with MF Global UK Ltd., trustee James W. Giddens said he had separately resolved conflicting claims with the MF Global parent formerly run by Jon Corzine, avoiding continuing litigation with the two affiliates. He has filed a request for approval of the pacts in U.S. Bankruptcy Court in Manhattan, where Judge Martin Glenn is handling the brokerage liquidation that was spurred by the eighth largest U.S. bankruptcy, filed in 2011.