Administrators to set a last date for proving the order also provides a mechanism by which the administrators are able to reject those claims which they believe are invalid, giving clients 21 days to appeal any such rejection.
The application to approve the MF Global UK client money distribution procedure at the High Court today was successful and prescribes a process by which client money should be distributed. As a result of receiving the Order the Administrators have stipulated that clients have until 19 July 2013, being the last date for proving, to either return a client money claim form or a signed settlement agreement, in order to guarantee participation in the second interim dividend which the administrators intend to pay in August 2013.
In addition to allowing the Administrators to set a last date for proving the order also provides a mechanism by which the administrators are able to reject those claims which they believe are invalid, giving clients 21 days to appeal any such rejection, in line with the procedure for unsecured creditors under the Special Administration regime.
Richard Heis, joint special administrator of MF Global UK and restructuring partner at KPMG, commented: “Today’s court hearing represents an important milestone in returning client money to claimants. It is the first time administrators have sought court approval of a client money distribution procedure such as this, and it will no doubt set a precedent for the way in which future client money insolvent trusts are administered”.
The Administrators also sought an order to postpone the unsecured dividend last date for proving, and have stipulated that clients have until 19 July 2013, to which Richard Heis further commented that: “The setting of bar dates for both client money claimants and unsecured creditors will we hope encourage any claimants who have not yet submitted claims to do so, and for those that have received but not returned settlement agreements to return these as soon as possible, in order that we can distribute as much money as possible to clients and creditors.”
Those customers who have already submitted claims or returned settlement agreements need not take any action as a result of these bar dates unless advised by the Administrators. The client money distribution plan approved by the court and supporting documentation will be available at: www.kpmg.co.uk/mfglobaluk.
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For further information please contact:
Sorrelle Cooper, Senior PR manager, KPMG:
T: 020 7694 8527
M: 07932 078218
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
Richard Fleming, Richard Heis and Mike Pink of KPMG LLP were appointed as the "Joint Special Administrators" of MF Global UK Limited following an application to the High Court in London by the directors of MF Global UK Limited on Monday 31 October 2011.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.