The Statement of Affairs is a statutory document setting out the financial position of the company at the date of insolvency
In accordance with The Investment Bank Special Administration Regulations 2011 and Paragraph 47(1) Schedule B1 of the Insolvency Act 1986 ("the Act"), the directors of an insolvent investment bank are bound to submit a Statement of Affairs (“SoA”) to the insolvency office holders. The SoA is a statutory document setting out the financial position of the company at the date of insolvency.
On 7 March 2012, the SoA of MF Global UK Limited ("MF Global UK") was submitted to the Special Administrators. The SoA was signed by Mr Charles Pendred, non-executive Chairman of MF Global UK, and statements of concurrence were also received from Mr Richard Moore and Mr Kemper Cagney. A copy of the SoA is available in the section immediately below this note, which also includes some of the key assumptions used by the directors in preparing the SoA.
The document received complies with the statutory requirements under the Act.
Given the nature and number of the extant issues impacting both the MF Global UK house and client asset estates, the directors have been unable to reach a view on the realisable value of particular classes of assets or, consequently, the likely surplus or shortfall to the estates. The Special Administrators recognise the desire of creditors, clients and other stakeholders to have greater visibility over both the house and client estates, and intend to publish information (subject to any commercial or legal constraints) about each class of assets when available. Similarly, we will update creditors on the distribution model that we disclosed in our February 2012 court hearing and the key issues that were being considered therein.
By publishing the SoA, the Special Administrators do not purport that the contents of the SoA are accurate – either as to quantum of claims or classification between segregated and non-segregated/creditor claims. The ultimate determination of these matters will be by the Special Administrators or by the Court.
Statement of Affairs of MF Global UK: summary of assets and liabilities as at 31 October 2011
The Special Administrators have taken down the list of creditors, which forms part of the SoA, while they consider an individual’s claim of personal threat. In accordance with the relevant special administration provisions, the Special Administrators must disclose the detailed directors’ SoA. They can only apply for a court order to redact information contained in the SoA in specific circumstances, such as where there is a threat of physical violence or where publication would prejudice the conduct of the special administration.
While every reasonable effort is made to ensure that the information provided on the pages of this website concerning MF Global UK Limited (in Special Administration) and its Joint Special Administrators, MF Global Overseas Limited (in Administration), MF Global UK Services Limited (in Administration) and MF Global Finance Europe Limited (in Administration) and their respective administrators (together the "MFG UK Estate") is accurate, no guarantees for the currency or accuracy of the website or information therein are made. The pages of this website concerning the MFG UK Estate and related material (or third party information), is provided ‘as is’. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied.
Please be aware that the MFG UK Estate and KPMG LLP, hereby exclude all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the use of this website or the information, content or materials included on this website, including without limitation, indirect or consequential loss or damage, loss of actual or anticipated profits, loss of revenue, loss of business, loss of opportunity, loss of anticipated savings, loss of goodwill or loss of reputation. Nothing in this disclaimer excludes or limits the Joint Special Administrators', the Joint Administrators' or MFG UK Estate's liability for fraud or fraudulent misrepresentation or any liability which may not be limited or excluded by law.
The use of this website and any dispute or claim arising out of or in connection with this website (including non-contractual disputes or claims) is governed by English law and you irrevocably submit to the exclusive jurisdiction of the English courts.
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.