KPMG racks up £14m in fees at MF Global UK
Administrators announce £14m fees since appointment in November
KPMG ADMINISTRATORS have charged £14m in fees for nine weeks’ work at MF Global UK.
Since their appointment, the administrators’ bill so far stands at £14m with a further £3.5m for solicitor fees.
Richard Fleming, Richard Heis and Mike Pink, partners at KPMG, were appointed joint special administrators of MF Global UK in November.
The remuneration was revealed at the first creditor meeting yesterday, which was attended by more than 800 representatives.
The administrators’ proposals to deal with MF Global were voted in favour by the majority of the creditors.
The proposals include the three elements of the special administration regime: making a swift return of client assets; timely engagement with authorities; and to wind up the business or rescue it depending on which is in the best interest for creditors.
Heis, (pictured) said: “This has marked a milestone in the special administration of MF Global UK. Both clients and creditors voted overwhelmingly in favour of our proposals, which include the expectation that we will be able to make an interim distribution of client monies within the next few weeks.”
According to the proposals the trio has managed to salvage £594m, representing 82% of segregated funds, with an estimated £200m yet to collect.
Unusually, a creditor committee was not established at the meeting. A committee is normally chosen to represent creditors on decisions made in relation to the insolvent business.