MF Global Holdings, Ltd. (fka MFGLQ)

[mrfence]

Welp, it looks like they're not disclosing the settlement amount nor the terms but I noticed the cash available has more than doubled since the last quarter but that doesn't mean the settlement has been paid in full or that the settlement is being paid off completely in cash. They may be accepting some assets in payment that shall be liquidated as part of the settlement. LOL, they're definitely keeping it confidential!

On March 28, 2014, the Plan Administrator, filed a lawsuit in the Southern District of New York against PricewaterhouseCoopers LLP (“PwC”), Holdings Ltd.’s long-time external auditors and accounting experts. The complaint alleged that PwC committed professional malpractice in connection with erroneous accounting advice and audit services concerning the use of repurchase-to-maturity financing transactions and off-balance-sheet accounting for the company’s investment in billions of dollars worth of European sovereign debt and concerning over $100.0 million in deferred tax assets. [See MF Global Holdings Ltd., as Plan Administrator v. PricewaterhouseCoopers LLP, No. 14-cv-2197-VM]. On March 6, 2017, a jury trial commenced before the Hon. Victor Marrero in the United States District Court for the Southern District of New York. On March 23, 2017, it was announced that a confidential settlement of this matter had been reached to the mutual satisfaction of both parties and on April 5, 2017, a dismissal of the action with prejudice was filed with the District Court. All amounts that are part of the confidential settlement will be included in the next distribution, to the extent they constitute Available Cash, regardless of whether such amounts have been received prior to March 31, 2017. See Note 12 for further information.
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Note 12: Subsequent Events
On April 13, 2017, Finance USA entered into a confidential settlement with certain insurers representing $40 million of the approximately $141 million principal amount of Finance USA’s claim as a result of the unlawful trading activity of Evan Dooley for a total payment to Finance USA in excess of the settling insurers’ aggregate principal obligation. The settlement proceeds from this partial settlement in New Hampshire Insurance Co. et al. v. MF Global Finance USA, Inc., No. 601621/09 (MF), brought in the Supreme Court of the State of New York, New York County, have been paid in full, will be reflected in the next QOR, and will be included in the next distribution to the extent such proceeds constitute Available Cash.
The Plan Administrator intends to make a distribution shortly, and will file a Notice of Distribution in advance of the commencement of the distribution. This distribution will include, among other things, the amounts that flow to Available Cash from the confidential settlements in Dooley, PwC, and amounts reverting from reserves established in the MDL settlement as described above, regardless of whether such amounts are reflected in the Schedules of Cash Flows in this QOR or will be reflected in the next QOR because such amounts have been or will be received in April prior to the distribution. In connection with this distribution, the Plan Administrator also evaluated the Plan Administration Expenses Reserve and the MFGAA Expenses Reserve and determined it would be prudent to decrease its estimates of potential future operating expenses and professional fees to $41.3 million for the Plan Administrator and $3.7 million for MFGAA, which includes reasonable contingency amounts.
The Plan Administrator has recorded amounts in the financial statements as of the reporting date based on the information available at the time the review was performed. Any events subsequent to the time of the review are not reflected in the statements of net assets in liquidation or schedule of cash flows and will be reflected in future QORs.