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BREAKING: Corzine To Pay CFTC $5M Over MF Global Meltdown
By Carmen Germaine
Law360, New York (January 5, 2017, 1:06 PM EST) -- Former MF Global CEO Jon Corzine and assistant treasurer Edith O’Brien have agreed to pay $5 million and $500,000, respectively, to the U.S. Commodity Futures Trading Commission to settle charges over their roles in the firm’s 2011 collapse, the CFTC announced Thursday.
Corzine and O’Brien both inked consent agreements filed Thursday in New York federal court, agreeing to pay civil penalties without admitting or denying the CFTC’s allegations that they failed to properly supervise MF Global as the firm experienced a worsening liquidity crisis, leading to... http://www.law360.com/securities/articles/877880/breaking-corzine-to-pay-cftc-5m-over-mf-global-meltdown?nl_pk=f7c9c25e-9d09-43c5-bde1-0ab35d570a87&utm_source=newsletter&utm_medium=email&utm_campaign=securities
Exactly! What you would gain from a tax write off would likely be a small fraction of the potential recovery so you have no more to loose by waiting other than delaying any write off. If the pay off is less than your cost then you would still write off the difference anyway.
I only need $0.025 per share to break even so a ten cent per share recovery nets me a 300% profit, and there is approximately $2.00 per share assets still on the table earning a return while being liquidated, Weeeeeeeeeeee!
http://bleacherreport.com/atlanta-falcons
Thanks, waited this long I guess another couple years wont hurt me,,because what you say makes it logical to hold....happy weekend....go ATLANTA FALCONS....
You're free to do that, and it's no skin off any other shareholders nose but consider the fact that there may be a substantial distribution in 2018... http://investorshub.advfn.com/boards/read_msg.aspx?message_id=88800584 ...and if not, you may then write it off carrying the loss forward until it's all used up.
PS... As of the most recent Q there is still...
I never really banked on anything. this has been dead money for quite some time. when I need the long term write off, i'll go for it too (unless a miracle happens)
having this removed from my account,for A TAX WRITE OFF...HOPEFULLY....seems to me it over....JOKER
It mentions the Estate. This is all new to me to
IF you look at the MF Global site that tracks the case, it clearly says the estate has been closed: http://dm.epiq11.com/mfg/project#
IMHO the estate is now just us bagholders
where does it mention shareholders?
$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.......
the month is growing thin .....any news..
Hope is upon us,great article of Hope,our time is near....my ears are to the web....Joker
I think what happened is anyone with a claim against the estate has been settled either in full or very close to full. Now what's left is us, the bagholders with common shares. MFGLQ has been granted a trial by jury. Even if MFGLQ is awarded $1 by the jury, PWC will have to pay all court costs and attorney fees. We might hear about a 9 figure settlement to make this go away
If there is a ray of hope; $1 Billion
MF Global Suit Against PwC Cleared for Trial
A judge says a jury should decide whether PwC provided bad accounting advice that caused MF Global's collapse.
“This is a major victory for the MF Global [bankruptcy] estate,” Nader Tavakoli, MF Global’s lead director, told The Wall Street Journal. “It sends a strong message concerning the need for responsibility and accountability, and we hope to secure a substantial recovery for MF Global’s stakeholders.”
http://ww2.cfo.com/legal/2016/08/mf-global-suit-pwc-cleared-trial/
This is pretty big news. The bankruptcy estate has been granted a trial by jury. Legal fees alone are going to hit PWC. Wonder if we hear of a settlement?
I thought this was going to be resolved in July. I had also heard that they had enough assets to cover our losses. Please advise me if you have any other information
Thanks,I don't need any more losses,have enough to write off, now I need some profits,LOL
no clue. i'm just holding this till i need to off set any long term losses. if there is a miracle payday before then, i will be quite happy
Anything new here or are we toast?
MF Global settlements rise to $204M, co-lead plaintiff AIMCo reports
The corporation that invests on behalf of Alberta government pension funds is claiming victory in recovering a total of US $204 million in three settlements as co-lead in a New York legal action against now-defunct broker-dealer MF Global.
AIMCo, the Alberta Investment Management Co., reported Thursday it and Virginia Retirement System have won the settlements to be shared with class action members from their securities litigation started three years ago. It’s not known how much will go to the Alberta fund.
The two leads in the action have said they are owed a combined $19 million, with AIMCo’s claim related to its equity stake in MF Global. AIMCo spokesman Denes Nemeth said he can’t provide more detail on AIMCo’s interest because the matter is still in the court system.
Kevin Uebelein, AIMCo chief executive, said the company felt obligated to take the lead in the action to protect its investors, which include 27 pension, endowment and government funds with a total of $85 billion of assets under management.
“Companies that do not adhere to those same high standards should know that we will work tirelessly, and exhaust all available avenues, to ensure our clients best interests are preserved,” he said in a news release.
MF Global filed for bankruptcy in 2011, shortly after investors learned that MF Global’s financial stability was at risk and that over $1.2 billion in customer funds were missing.
The class action claims that it misrepresented to the market its risk controls and liquidity position, failed to disclose its overexposure to European sovereign debt, and failed to properly account for its deferred tax assets.
AIMCo said the recoveries include a US$64-million settlement resolving claims against former CEO Jon Corzine and other senior executives. Underwriter defendants led by Goldman Sachs settled for $75 million and outside auditor PricewaterhouseCoopers LLP settled for $65 million.
Further litigation continues against the remaining underwriters, led by Jefferies LLC, who were responsible for the final $325-million bond offering, it said.
dhealing@calgaryherald.com
http://calgaryherald.com/business/local-business/aimco-says-mf-global-class-action-settlements-now-at-us-204m
Mediation Set for Disputes Over MF Global Settlements
By Dow Jones Business News, November 20, 2015, 03:05:00 PM EDT
Creditors, investors and former officials of MF Global will restart mediation in hopes of reaching a multimillion- dollar settlement of litigation related to the brokerage's collapse.
The parties will meet Monday with Magistrate Judge James C. Francis and are "as close as we've ever been" to a broad settlement of litigation, a lawyer for MF Global's estate told Judge Victor Marrero of the U.S. District Court in Manhattan during a hearing Friday.
They face a Wednesday deadline to make progress. On that date Judge Marrero said he would likely rule on partial settlements in the case that were negotiated individually after discussions toward a bigger settlement broke down.
Those settlements would resolve the claims brought by investors against former Chief Executive Jon Corzine, ex-finance chief Henri Steenkamp and several other former MF Global directors, for $64.5 million. Under a separate deal, accounting firm PricewaterhouseCoopers LLP would contribute $65 million toward settling claims.
However, lawyers representing the MF Global estate, responsible for collecting assets to repay creditors owed $2.4 billion, have objected to the structure of the directors' settlement, saying that it wastes $25 million in insurance money. Through a complicated insurance policy structure, a top $25 million tier of a $225 million policy wouldn't be accessible any longer if claims are settled individually rather than through a broader, so-called global settlement. Lawyers for the estate want to delay approval as mediation and negotiations toward that end continue.
Alternatively, parties that agreed to these settlements said that further delay would undo the progress that has been made and that years of negotiations toward the global settlement have failed. They pointed to the rapidly dwindling directors' and officers' insurance funds, spent at more than $1 million a month to cover legal fees, as reason to move forward with the smaller deals.
Judge Marrero said during the hearing Friday that he plans to rule Wednesday on whether to approve the settlements before him. However, he said that he would speak with Judge Francis, the mediator, after the mediation on Monday. If Judge Francis said meaningful progress was being made on a global resolution, Judge Marrero said he would wait a few more days to rule.
Even after Judge Marrero rules, the settlements would take 30 days to become effective if approved. There is also a motion before Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan to block the deals from taking effect.
Previously, Judge Marrero approved a $74.9 million settlement with a group of underwriters. The approval of the two other settlements under consideration now would bring the total fund for investors to more than $200 million, a lawyer for the investors said, amounting to roughly 20% of their damages.
Brokerage customers of MF Global, with funds recovered by Securities Investor Protection Act litigation, are set to receive roughly 95 cents on the dollar and aren't involved in the current settlement negotiations.
Write to Stephanie Gleason at stephanie.gleason@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
11-20-151505ET
Copyright (c) 2015 Dow Jones & Company, Inc.
Read more: http://www.nasdaq.com/article/mediation-set-for-disputes-over-mf-global-settlements-20151120-00622#ixzz3s4ZwEISH
November 20, 2015
at 9:30 a.m.
The Settlement Hearing will be held on November 20, 2015 at 9:30 a.m., before the Honorable Victor Marrero at the United States District Court for the Southern District of New York, Courtroom 11B of the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007, to determine, among other things, whether the proposed PwC Settlement is fair, reasonable and adequate and should be approved; whether the proposed Individual Defendant Settlement is fair, reasonable and adequate and should be approved; whether the proposed Plan of Allocation is fair and reasonable and should be approved; and whether Co-Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of expenses should be approved.
i see what you mean. the link is just redirecting to the homepage.
google: pwc exonerate mf global
you will see the story from Nov 10th. For whatever reason, the link is redirecting back to the homepage. maybe someone else will have better luck
Help! I clicked the link & can't find the story!
News today regarding PWC
http://www.financemagnates.com/institutional-forex/brokerage/us-supreme-court-overturns-mf-global-ruling-exonerating-pwc/
looks like the $65 million settlement payment won't happen if the ruling was overturned
This week the final distribution is taking place. Now the holding company (mfglq) can possibly collect on the many outstanding lawsuits as well as more money from the UK mf global unit. This wont trade again but there is a slight chance there will distribution to common shares. I'll be happy with anything.
Holding a fistful of shares here.think we trade again or just get paid 5 bucks a share
Unimaginable best sums it up. Now the holding company can collect for common shareholders if successful in court.
Judge Paves Way for Nearly Full Recoveries for MF Global Brokerage Creditors http://www.wsj.com/articles/judge-paves-way-for-nearly-full-recoveries-for-mf-global-brokerage-creditors-1440013562
After 2 years and 1 month into a 5 year liquidation plan account holders have been made whole, and the way has been paved for creditors to recover 95% of what they're owed. No mention of any chance of stakeholder recovery @ this time however assets that originally took the firm down continue to appreciate... tic toc
This is pretty significant
Under the terms of the Sale and Assumption Agreement:
The Trustee will sell to MFGH certain claims, estate assets, contracts, documents and data, including:
o the Trustee’s claims in the Multidistrict Litigation (MDL) against former officers, directors and other employees of MF Global and other third parties and claims against MFGI’s insurers
o future recoveries from MF Global UK
o any cash remaining in the estate following the completion of the proposed final distribution to general unsecured creditors
o all of the systems and data necessary to continue to litigate
o certain other remaining contingent recoveries
July 24th update:
http://dm.epiq11.com/MFG/Project#
Unsecured creditors might be up to 94% paid back - hearing on August 19th
MF Global Creditors To Recoup More As Bankruptcy Nears End
Jul 27, 2015 Jonathan Stempel | Reuters
NEW YORK, July 24 (Reuters) - The trustee liquidating the bankrupt brokerage unit of Jon Corzine's MF Global Holdings Ltd on Friday announced an agreement that would enable unsecured creditors to recoup nearly everything they are owed, and largely conclude the unit's nearly four-year liquidation.
James Giddens, the trustee, said he would sell various claims held by the MF Global Inc brokerage, including claims against Corzine, who was chief executive of MF Global, and other officials, to the plan administrator overseeing the parent's Chapter 11 case. The administrator would in exchange give up claims in the brokerage's bankruptcy.
Giddens said the agreement would add $186 million to the brokerage's bankruptcy estate, and let him pay unsecured creditors a total of 94 percent to 95 percent on their claims, including the nearly $1 billion they have already received.
"This agreement marks a final chapter in the liquidation," Giddens said in a statement.
The trustee previously paid out $6.7 billion to customers and $33.2 million to other creditors, compensating them in full. He said the brokerage liquidation will end once seven remaining claims are resolved.
In a court filing, Erik Graber, chief operating officer of the administrator, said the agreement would benefit the parent's estate by adding "significant litigation and insurance claims."
The agreement requires court approval; a hearing has been set for Aug. 19.
MF Global filed for bankruptcy on Oct. 31, 2011, as worries mounted about Corzine's $6.3 billion bet on sovereign debt, as well as credit rating downgrades, margin calls and news that customer funds had been used to cover liquidity shortfalls.
Corzine became chairman and chief executive of MF Global in 2010, shortly after leaving office as the governor of New Jersey. He is also a former U.S. senator and a former co-chairman of Goldman Sachs.
He and other former MF Global officials this month reached a $64.5 million settlement of litigation by shareholders and bondholders. Corzine still faces lawsuits by former commodities customers and the U.S. Commodity Futures Trading Commission.
The cases are In re: MF Global Inc, U.S. Bankruptcy Court, Southern District of New York, No. 11-02790; and In re: MF Global Holdings Ltd et al in the same court, No. 11-15059. (Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)
There is a filing for a 3rd distribution
Getting pretty close to the common shareholders now.
http://www.mfglobalcaseinfo.com/pdflib/2101_15059.pdf
Former MF Global CEO Corzine considers launching hedge fund: WSJ.com http://www.reuters.com/article/2015/04/20/us-usa-hedgefunds-corzine-idUSKBN0NB01T20150420
Technically MF Global was barely legally bankrupt when filing BK. 39bil assets to 40bil debt. There just weren't any bridge loans available that were big enough to cover their global financial indiscretions. With virtually no overhead under liquidation operations, and appreciating mega assets, future recovery for class 9A shareholders looks brighter every report. No hurry here though. There are little over 3 more years of scheduled liquidation ahead so let the assets continue appreciating. Only 1.3bil commons Weeeeeeeeeeeeeeeeeeee
this is progressing nicely. first they went from saying secured creditors might be paid and unsecured were doubtful to see anything to 100% of the secured being paid and 72% of unsecured being paid with future installments planned. the dark cloud is dissipating quickly
100% secured paid, 72% unsecured paid = payday coming?
28% of unsecured left to pay before common shareholders receive anything. Definitely interesting and will make for a good story if we get paid
MF Global Inc. Trustee Seeks Authorization for Second Distribution to Unsecured General Creditors
Distribution Would Bring Total Unsecured General Creditor Payout to 72%
March 25, 2015 – James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York, Honorable Judge Martin Glenn presiding, seeking approval to make a second interim distribution of approximately $461 million on allowed unsecured general creditor claims, which would bring total distributions on those claims to 72%.
“This is another significant milestone in the MF Global Inc. liquidation as we continue winding down the estate,” Giddens said. “When MF Global failed, the prospect of any general unsecured distribution was in doubt. I am pleased that today we are in a position where former customers and secured general claimants are fully satisfied and unsecured general creditors are now about to recover a substantial majority of their claims.”
The Trustee’s motion also seeks authorization to establish the second unsecured claims reserve and release funds from the reserves that are no longer needed. With this filing, the Trustee is fully protecting the MFGI estate and respecting the due process rights of all.
The Trustee is able to proceed with this second interim distribution due to substantial progress in resolving disputed general creditor claims. The Trustee will continue to diligently attempt to work through unresolved claims and other disputes. As additional claims are resolved, required reserves are further reduced, and potential recoveries are made through ongoing litigation, there is the prospect of additional distributions to allowed unsecured claimants at a future date.
This significant progress in the administration of the general estate follows the Trustee’s full satisfaction of allowed customer, secured, administrative and priority claims, and a first interim distribution for allowed unsecured claims. Thus far, the Trustee has distributed:
Customer claimants - $6.7 billion to cover 100% of allowed claims
Secured, administrative and priority general claimants - $32.3 million to cover 100% of allowed claims
Unsecured general claimants - $518.7 million first interim distribution to cover 39% of allowed claims
The significant recovery for unsecured creditors does not diminish the consequences of the unprecedented customer property segregation failure that led to MFGI’s liquidation, including the length of time customers have been without their property.
The Trustee is grateful for the assistance, cooperation and guidance of Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York, the Securities Investor Protection Corporation, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
http://www.resourceinvestor.com/2015/03/25/mf-global-trustee-release-461-million-unsecured-creditors
No choice but to ride it out... I registered my shares in my name with my transfer agent so if there is a payday, I won't depend on my broker to tell me.
With regards to the possibility of a payout to commons, I believe there is a good chance because the company had 39bil assets, and 40bil liabilities when voluntarily filing BK... A large percentage of the 39bil assets are invested in Europe's most indebted Nations, and other interest paying investments so without the overhead of a going concern the assets are appreciating during the 5 year liquidation
Even the bankruptcy papers listed commons as class 9A, and said there was a chance of recovery for them early on... that's almost never said in cases like this.
I believe there were 1.2bil shares of commons so if assets were to appreciate by 10% after expenses then could see some number of $$$ per common share recovered!
Still riding it out to see how it all unfolds. Stranger things have happened
What makes you think there is a payday for common shareholders? Do common shareholders need to register for any future distribution?
Banks Settle MF Global Underwriting Case for $74M - Analyst Blog
.
Zacks
By Zacks Equity Research
January 7, 2015 11:00 AM
Banks continue to move past their legal headwinds. The 2011 case against divisions of seven banks, for providing misleading statements related to the presently bankrupt MF Global Holdings Ltd.’s certain debt offering as underwriters, has won court approval for settlement, per a Bloomberg Report.
The banks will pay $74 million in aggregate to settle the allegations. MF Global had collapsed in 2011, amid accusations that the firm’s owner Jon Corzine had used client money to cover liquidity shortfalls.
Banks, whose units are part of the settlement, include Citigroup Inc. (C), Deutsche Bank AG (DB), The Goldman Sachs Group, Inc. (GS), JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), The Royal Bank of Scotland Group plc (RBS) and Sandler O'Neill and Partners. The plaintiffs include former stockholders and bondholders who had invested in MF Global common stock, convertible bonds and senior notes between May 20, 2010 and Nov 21, 2011.
The case, filed in the U.S. District Court, Southern District of New York, accused these banks of misrepresenting the facts related to the exposure of MF Global to European sovereign debt. The plaintiffs also alleged that these banks inaccurately inflated MF Global’s capability to manage risks and inadequately accounted for deferred tax assets.
Conclusion
For these banks, the above-mentioned lawsuit is an additional burden to their ongoing legal problems. Further, banks across the globe have been facing increasing scrutiny for their business practices in the years prior to the financial crisis. Many of the banks have paid billions of dollars as fines and compensation to settle lawsuits and probes.
Many investors have lost their hard-earned money as a result of such business malpractices by the banks. We believe that these banks’ efforts to resolve litigation issues regarding their business misconducts will go a long way in regaining investors’ confidence.
http://finance.yahoo.com/news/banks-settle-mf-global-underwriting-160004730.html
MF Global Holdings to pay $100 million fine in CFTC settlement
By Douwe Miedema and Karey Van Hall
WASHINGTON Wed Dec 24, 2014 4:34pm EST
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MF Global Holdings nears settlement with CFTC
(Reuters) - The U.S. Commodity Futures Trading Commission said on Wednesday it had fined MF Global Holdings Ltd for wrongdoing during the collapse of the futures brokerage, but will continue its lawsuit against the firm's former chief, Jon Corzine.
A federal judge in Manhattan approved a settlement in which the company will pay a $100 million fine and be jointly responsible for returning $1.212 billion in client funds that another unit had been ordered to restitute last year.
The parties agreed on the settlement earlier this month, though terms were not disclosed at the time.
The CFTC said its litigation would continue against former MF Global Chief Executive Corzine and former Assistant Treasurer Edith O'Brien. If they do not settle, the former officials may have to defend themselves in court.
A lawyer for MF Global Holdings did not immediately return a request for comment.
MF Global went under in 2011 at the height of the European debt crisis when markets became spooked by the company's $6.3 billion bet on European government bonds.
U.S. authorities have accused the company of using customer funds to cover liquidity shortfalls.
The CFTC previously settled with the company's brokerage unit, MF Global Inc, which agreed to return $1.212 billion to harmed customers and pay a $100 million penalty.
FILED UNDER:
Regulatory News
Breakingviews
http://www.reuters.com/article/2014/12/24/us-mf-global-hldg-settlement-idUSKBN0K213G20141224
Group of Financial Institutions Settles MF Global Suit
Goldman, J.P. Morgan, Citigroup Among Firms in Settlement
By Joseph Checkler
Jan. 6, 2015 5:22 p.m. ET
A group of well-known financial institutions settled a lawsuit brought by former MF Global Holdings Ltd. investors for $74 million.
In a filing with U.S. District Court in Manhattan, lawyers for the plaintiffs said the settlement with financial institutions that served as underwriters for the sale of MF Global ‘s stock and bonds before its collapse—among them units of Goldman Sachs Group Inc GS -0.71% ., J.P. Morgan JPM +1.71% & Co. and Citigroup Inc. C +0.80% —”dismisses and releases” all claims against them in the suit.
The investors, now led by Virginia Retirement System, sued the financial institutions as part of a larger 2011 suit against former MF Global Chief Executive Jon S. Corzine and other company executives, accusing the parties of not disclosing the risks associated with MF Global ‘s European sovereign debt trades using repurchase-to-maturity transactions.
In the filing, lawyers for the plaintiffs said the parts of the suit against other parties remain alive. A judge must approve the settlement for it to take effect. The plaintiffs are asking for preliminary approval of the pact quickly, with a final approval later.
Aside from Goldman, J.P. Morgan and Citigroup, units of Deutsche Bank AG DBK.XE -0.18% , Merrill Lynch, Pierce, Fenner & Smith Inc., RBS Securities Inc. and Sandler O’Neill + Partners L.P. settled.
Lawyers representing the seven institutions didn’t immediately respond to requests for comment.
MF Global imploded just over three years ago, as investors fled the firm after its bets on European sovereign debt came to light. The exodus created what was believed to be a $1.6 billion shortfall in customer accounts that should have been segregated from MF Global’s money pool.
Even with the perceived shortfall recovered, lawsuits against the company’s former officials and other employees—as well as the firms who did business with MF Global—remain. Mr. Corzine and the other executives have been tapping two separate insurance policies to pay for their defense costs. While most of the suits are still in their early stages, lawyers for the former executives have said the proceedings will ramp up soon.
Last year, a bankruptcy judge gave them permission to tap most of a $200 million directors and officers insurance policy. Former MF customers have fought their use of a separate policy for errors and omissions, saying some of it belongs to them.
Mr. Corzine, a former Goldman Sachs Group Inc. chairman and once New Jersey’s governor, has denied wrongdoing, as have the other former executives.
Write to Joseph Checkler at joseph.checkler@wsj.com
http://www.wsj.com/articles/group-of-financial-institutions-settles-mf-global-suit-1420582922
MF Global agrees to settle platinum, palladium manipulation claims
By Nate Raymond
NEW YORK Thu Oct 30, 2014 12:10pm EDT
Oct 30 (Reuters) - The failed MF Global Holdings Ltd and its broker-dealer unit have agreed to settle class action lawsuits accusing them of manipulating platinum and palladium prices.
The proposed settlements, disclosed in court papers filed late Wednesday in Manhattan federal court, call for plaintiffs to receive nearly $21.1 million in allowed claims against the broker-dealer in its liquidation proceeding.
They also call for plaintiffs to receive $5.25 million in cash from MF Global's insurer, and another $1 million from MF Global itself in exchange for assigning their claims against a former trader to the company.
The plaintiffs include both purchasers or sellers of platinum or palladium futures from June 2006 to April 2010, and purchasers of the metals in the physical market during that time.
They accused MF Global, former MF Global trader Joseph Welsh, and hedge fund Moore Capital Management of having schemed from May 2006 to June 2008 to inflate prices in platinum and palladium futures contracts traded on the New York Mercantile Exchange.
Moore previously agreed to pay $57.4 million to the plaintiffs to settle its part of the case.
The lawsuits came after Moore agreed to pay $25 million in 2010 to resolve claims by the U.S. Commodity Futures Trading Commission that it attempted to manipulate platinum and palladium futures prices.
The CFTC also accused Welsh in a 2012 lawsuit of market manipulation. That lawsuit remains pending.
MF Global filed for Chapter 11 bankruptcy protection in October 2011.
As part of Wednesday's settlement, MF Global's bankruptcy estate has also agreed to pay $1 million to be assigned the plaintiffs' claims against Welsh.
Welsh had previously agreed to the entry of $42 million in judgments against him in the class action, which could be only be enforced against a directors and officers insurance policy to which he assigned the plaintiffs the rights.
All settlements must be approved by U.S. District Judge William Pauley in Manhattan.
Representatives for the plaintiffs and James Giddens, the broker-dealer unit's trustee, either did not immediately respond to requests for comment or had no immediate comment.
The case is In Re: Platinum and Palladium Commodities Litigation, U.S. District Court, Southern District of New York, No. 10-03617. (Reporting by Nate Raymond in New York; Editing by Marguerita Choy)
http://www.reuters.com/article/2014/10/30/mfglobal-settlement-idUSL1N0SP1N820141030
MF Global Execs Seek To Tap $7.5M More In E&O Coverage
By Cara Salvatore
Law360, New York (November 24, 2014, 8:21 PM ET) -- Executives of bankrupt MF Global Inc. asked a New York bankruptcy judge Friday to give them access to an additional $7.5 million worth of errors and omissions insurance coverage for legal bills from lawsuits connected to their involvement in the company’s downfall.
The individual insureds of the company — including former New Jersey Gov. Jon Corzine, who was the company’s CEO — were granted access to $200 million in directors and officers coverage in September.
But under a deal between the D&O insurers and those providing...
http://www.law360.com/articles/599005/mf-global-execs-seek-7-5m-more-to-cover-defense
MF Global Inc. Trustee Begins Distributions to Secured and Unsecured General Creditors http://finance.yahoo.com/news/mf-global-inc-trustee-begins-180500614.html
3 years later, some MF Global creditors get paid
Thursday, 30 Oct 2014 | 7:01 PM ETReuters
MF Global sign is seen in the office building where MF Global Holdings Ltd have offices in Manhattan on November 1, 2011 in New York.
A large group of creditors of MF Global's bankrupt brokerage unit will soon receive their first payout, as $518.7 million of checks start to be mailed out on Friday, the third anniversary of the company's Chapter 11 filing.
James Giddens, the trustee liquidating the MF Global brokerage unit, on Thursday said the payout to unsecured general creditors will cover 39 percent of claims he has deemed valid.
He said another $32.3 million will be distributed to some "priority'' claimants, covering all of their valid claims.
Giddens is keeping roughly $300 million in reserve for unresolved unsecured and priority claims, and said he expects another significant distribution by next June.
Once run by former Goldman Sachs co-chairman and New Jersey governor Jon Corzine, MF Global collapsed amid worries about Corzine's $6.3 billion bet on European sovereign debt, and the use of customer money to cover liquidity shortfalls.
The overall, $551 million payout is nearly twice the $295 million sum that Giddens had on Aug. 26 projected distributing. U.S. Bankruptcy Judge Martin Glenn in Manhattan authorized the higher payout earlier this month.
Giddens previously distributed $6.7 billion to satisfy all valid claims of the nearly 26,500 former commodities and securities customers of the brokerage unit.
It often takes years after a bankruptcy for customers and creditors to recoup all or some of their money.
Corzine and other former MF Global officials remain subject to other lawsuits by investors, customers and regulators. A committee representing the parent is pursuing a $1 billion lawsuit against former auditor PricewaterhouseCoopers.
The brokerage isn't technically in bankruptcy ???
http://online.wsj.com/articles/mf-global-payout-approved-for-unsecured-creditors-1412192185
MF Global Payout Approved for Unsecured Creditors
Judge Approves Payout to Creditors Who Have Waited Nearly Three Years for Their Money
By Joseph Checkler
Oct. 1, 2014 3:36 p.m. ET
A man exits the office complex of MF Global Holdings Ltd. in New York. Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan on Wednesday approved a payout to the unsecured creditors of the collapsed brokerage. REUTERS
NEW YORK—A judge on Wednesday approved a payout to MF Global's unsecured creditors, who have waited nearly three years as customers of the collapsed brokerage already had their money returned.
Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan said James W. Giddens, the trustee in charge of winding down the brokerage, could pay the unsecured creditors about $295 million.
A lawyer for Mr. Giddens said distributions to the unsecured creditors could begin as soon as the order is final. He also said settlements of unresolved claims could soon result in "very substantial" creditor distributions beyond the one approved Wednesday.
Earlier this year, Mr. Giddens set his final distributions to customers and all but a few individual brokerage and commodity customers have received the full amount of what they were owed.
Now, the unsecured creditors will receive a first distribution of more than 20% of the amount Mr. Giddens has agreed to pay. Holders of secured, administrative and priority claims that have been resolved will get the full amount of their money all at once.
Last week, Judge Glenn held off on approving the measure, saying he was "not happy" that lawyers for Mr. Giddens hadn't provided detailed information about some unresolved claims that they wanted to be estimated at zero dollars.
Mr. Giddens had requested to create a reserve fund of more than $400 million for unresolved claims, and to put a cap on the claims' amounts. The judge wanted specific information about the claims and legal arguments as to why he should place a cap on the amounts.
"I have a much better understanding of how you arrived at the numbers," Judge Glenn said to a lawyer for Mr. Giddens on Wednesday.
The brokerage and its parent company, MF Global Holdings Ltd., imploded in October 2011 after investors fled the firm upon learning about then-Chief Executive Jon S. Corzine's bets on European sovereign debt. The exodus created what was believed to be a $1.6 billion shortfall in customer accounts that should have been segregated from MF Global's money pool. The shortfall has since been recovered.
In April 2013, Judge Glenn approved a liquidation plan for the brokerage's parent, which called for unsecured bondholders to recover 12 cents to 42 cents on the dollar. Holders of a $1.2 billion revolving loan were to get 27 cents to 80 cents on the dollar under the proposal.
The brokerage isn't technically in bankruptcy, but is being unwound under the provisions of the Securities Investor Protection Act, which governs the liquidation of failed brokerages.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com.)
Write to Joseph Checkler at joseph.checkler@wsj.com
Corrections & Amplifications
An earlier version of this article incorrectly said that distributions to creditors will begin once the order is signed. They will begin once the order is final.
Judge Lets Corzine, Other Ex-MF Global Executives Tap Insurance
Former Executives Have Tapped about $47.5 million of the Insurance for Legal Defense
http://online.wsj.com/articles/judge-lets-corzine-other-ex-mf-global-executives-tap-insurance-1408644154
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MF Global Holdings Ltd. (Case No. 11-15059 (MG)),
MF Global Finance USA Inc. (Case No. 11-15058 (MG)),
MF Global Capital LLC (Case No. 11-15808) (MG)),
MF Global Market Services LLC (Case No. 11-15809 (MG))
MF Global FX Clear LLC (Case No. 11-15810 (MG)) and
MF Global Holdings USA Inc. (Case No. 12-10863 (MG))
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