Administrators were seeking directions on the status of certain US Treasury Bills
Update 15 November 2012 - Case Management Conference
A case management conference (“CMC”) was held before Mr Justice David Richards on 15 and 16 November 2012. Prior to the CMC, ICE Clear Europe Limited (“ICE”), LCH.Clearnet Limited and LCH.Clearnet SA (together “LCH”) applied to the Court to be joined as parties or to intervene in the 30.7 Application. At the CMC, it was ordered that ICE and LCH should be joined as parties in order to make their cases as to the beneficial ownership of the T-Bills as between MFG UK and Inc. The procedural timetable was also laid down by the Court, with the substantive hearing of the 30.7 Application being listed with a time estimate of 20 days, starting on 9 April 2013. A copy of the Court’s order dated 16 November 2012 can be found via the link below.
On 3 May 2012, the Administrators made an application (the “30.7 Application”) to the High Court seeking directions as to the status of certain US Treasury Bills that were held by MF Global UK Limited (“MFG UK”) when it entered special administration.
The US Treasury Bills had been transferred by MF Global Inc (“MFG Inc”) to MFG UK as collateral. MFG Inc alleges that they should have been held by MFG UK on a segregated basis pursuant to the Commodity Futures Trading Commission Rule 30.7 or otherwise, such that MFG Inc has a proprietary or client claim to them. The Administrators dispute this on the basis that the US Treasury Bills were transferred to MFGUK on absolute title transfer terms meaning that the legal and beneficial ownership of the US Treasury Bills passed to MFGUK.
The Administrators filed Richard Heis’s first witness statement in support of the 30.7 Application. The purpose of the statement is to provide the Court with some factual context to the questions asked in the 30.7 Application. Copies of the 30.7 Application and the witness statement can be found via the links below.
An initial directions hearing took place on 1 June 2012. The Court made a directions order, which can also be found via the links below. A case management conference has been listed with a time estimate of 2 hours, to be heard on 14, 15 or 16 November 2012. The substantive hearing of the 30.7 Application has been listed with a time estimate of 10-15 days, starting on 9 April 2013.
If you have any questions about the 30.7 Application, please contact the Administrators at email@example.com.
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