KPMG still to locate nearly 20% of MF Global funds
MF Global administrators salvage £594m of ringfenced funds but still need to retrieve £200m
KPMG ADMINISTRATORS still need to retrieve nearly 20% of customer funds at collapsed investment bank MF Global.
According to a report outlining their proposals the administrators said they have managed to salvage £594m representing 82% of segregated funds, with an estimated £200m yet to collect.
Richard Fleming, Richard Heis and Mike Pink, partners at KPMG, were appointed the UK’s first joint special administrators – a regime which has different objectives to a normal insolvency.
Of the outstanding amount to collect about $76m (£49m) is protected under the Financial Service Authority rules.
Richard Heis, (pictured) joint special administrator of MF Global UK, said: “We have worked closely with MF Global management and staff and the exchanges and clearing houses to allow the huge number of client positions to be transferred to other brokers or closed in an orderly manner, in accordance with the relevant rules.
“We are pleased with progress in the collection of both client and company monies, and are working hard to prepare to make an interim distribution of client money as soon as reasonably practicable.”
The administrators hope to pay the majority of client funds back before March 2012, with the creditors meetings scheduled for 9 January.
The special administration regime was created in February following the collapse of Lehman Brothers, which was swamped in litigation and complex transactions, resulting in some creditors waiting years for payment.
The newly created administration entails three tasks: making a swift return of client assets; timely engagement with authorities; and to rescue the business as a going concern, or to wind it up in the best interests of the creditors. A regular administration involves the latter, but not the first two objectives.
