On 28 November 2011 the joint administrators of MF Global UK Limited (in special administration) issued a Notice of Intended Dividend pursuant to Rule 175 of The Investment Bank Special Administration (England and Wales) Rules 2011 (“the SAR”). The notice stated that the distribution would be made within a two month period beginning 30 April 2012.
Whilst we have made significant progress in recovering funds from banks and exchanges and in realising house assets, since that date a number of issues that impact the ability to make a dividend have arisen and these are set out below:
In calculating an interim dividend, we would need to make adequate provision for all the issues set out above and we would need permission from the court to declare the dividend. Pending resolution of: (a) the complex issues surrounding the classification of assets between client and house, and the classification of claims between client and the general estate; and (b) the MF Global Finance USA Inc appeal, it is impractical to make any payments at this stage. Accordingly, the joint administrators do not intend to seek the court’s permission at this time and have taken the decision to postpone the dividend pursuant to SAR 177(1) and 177(2) until such time as these issues have been resolved.
Further announcements will be made as work progresses.
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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.