KPMG ADMINISTRATORS have made 400 people redundant weeks before Christmas at collapsed investment business MF Global UK.
Richard Fleming, Richard Heis (pictured) and Mike Pink, partners at KPMG, were announced as the first practitioners to take-on a special administration, following their appointment to MF Global UK in November.
The business had employed approximately 725 people. Just more than 300 will now stay to help reconcile client monies, assets and other elements required to dissolve the business.
About 150 will be made redundant at the end of January with the remainder staying on until April.
However, the administrators said this period could be extended by months or even years depending on the progress to repay creditors.
Heis, said: “We are very pleased that so many people have agreed to stay. This is an extremely complex process and the assistance of the MF Global UK staff will help to maximise returns for the estate and expedite the return of client assets and monies.”
“Final distributions to clients will not be made until all client risk positions have been liquidated or transferred and all claims against have been validated. However, we are likely to make interim distributions along the way,” he added.
The special administration regime (SAR) was created in February following the collapse of Lehman Brothers and is applicable to businesses regulated by the Financial Services Authority.
The SAR process entails administrators completing 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.
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