MF Global Holdings, Ltd. (fka MFGLQ)

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$159,000,000 settlement going to the MF Global Estate

http://www.law360.com/articles/826979/mf-global-gets-nod-on-159m-settlement-with-former-execs

Law360, New York (August 10, 2016, 7:05 PM ET) -- A New York bankruptcy judge signed off Wednesday on a $159 million settlement resolving outstanding litigation between MF Global and former CEO Jon Corzine and other executives over the company's collapse in 2011.

U.S. Bankruptcy Judge Martin Glenn said he would approve the settlement which he said at a court hearing in Manhattan was in the best interest of MF Global creditors. The settlement, which resolved multidistrict litigation between the company's former directors and officers, will result in a gross recovery of $132 million for the MF Global estate.

"This settlement is in the best interest of all creditors in the Chapter 11 cases," Judge Glenn said.

Judge Glenn said the litigation has been slow and draining and called the settlement a fair outcome under the circumstances because it will provide a definite recovery for MF Global creditors.

Of the anticipated $159 million in insurance policy proceeds, $2 million would go toward customer claims. An unspecified amount would be set aside to defend and potentially settle claims by the U.S. Commodity Futures Trading Commission against MF Global's former CEO, Jon Corzine, and former assistant treasurer, Edith O'Brien, as well as to settle claims by former MF Global customer Sapere CTA Fund LP, which had opted out of a class action.......