1. The Administrators are considering the possibility of negotiating a settlement agreement between the CMP and the general estate (the “Settlement”). The purpose of the Settlement would, broadly, be to resolve the outstanding issues in the CMP so that the CMP could make a final distribution of client money.
Amongst other benefits to clients and creditors, a Settlement would allow the CMP to be closed and accelerate the resolution of clients’ shortfall claims into the general estate, with the result that clients and creditors are likely to receive further distributions more quickly, and at less cost, than would otherwise be the case.
2. The Administrators applied to court on 7 April 2014 to fix the procedure for negotiating and, subject to the Court’s further approval, entering into the Settlement. The Administrators have listed a procedural hearing for 1 May 2014. Provided here are the application notice (PDF 2 MB) and draft Order (PDF 121 KB). The Administrators’ evidence in support of the application will provide further detail of the issues which could be resolved by the Settlement and this will be filed before the 1 May hearing and posted on this website.
3. Under the procedure detailed in the draft Order, one Administrator and legal team will be appointed to negotiate on behalf of the general estate, with another Administrator and legal team being appointed to negotiate on behalf of the CMP. If a Settlement is agreed in principle, the Administrators will give creditors and clients 28 days’ notice of its terms, before having a substantive hearing in July 2014. Creditors, clients and the FCA, would be able to appear at that July hearing to make representations on the proposed Settlement. MFGUK (as trustee of the CMP) and the Administrators (for the general estate) would at that stage seek the Court’s permission to sign the Settlement.
4.In order to resolve and close the CMP, the Administrators also need to deal with those clients who are shown in MFGUK’s records as being entitled to make client money claims, but who have not claimed. The Administrators are applying for a direction that they no longer need to make provision in the CMP for those ‘allocated but unclaimed’ clients. This part of the application would be dealt with at the July hearing.
5. Further updates will be posted on this website as the application progresses. If you have further questions which are not addressed on the website, please email email@example.com or call +44 (0) 20 7785 0308, where a member of the Administrators’ staff will be able to assist.
For the latest updates from the special administrators of MF Global UK Limited please visit our dedicated page.
For all non-press enquiries on MF Global UK Limited please email the following:
Claim queries: firstname.lastname@example.org
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.