Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

More On

MF Global customers could recover all of their money, trustee says

Bankruptcy Trustee Louis Freeh says that there may be a surplus after pending claims against the brokerage are settled

More than a year after the collapse of MF Global, its customers are getting some potentially encouraging news from the brokerage’s bankruptcy trustee.

Former FBI director and current MF Global trustee Louis Freeh said in a court filing Saturday that customers whose money was frozen when the brokerage went under in October 2011 could recover all of that cash.

According to Freeh, MF Global has recoverable assets of roughly $6.857 billion to $6.983 billion, while claims pending against the firm total $6.863 billion. If the firm’s assets fall on the higher end of the spectrum, Freeh predicts that there could be a surplus of up to $120 million, which would be doled out to customers. (If the total falls on the lower end, however, the firm could be facing a deficit of $6 million).

Former firm customers may have a glimmer of hope, but other creditors—including those with unsecured claims—likely will not be made whole, even if there is a surplus.

MF Global collapsed more than a year ago amid fears over its exposure to bad European debt. Following the company’s Chapter 11 bankruptcy filing, regulators discovered a $1.6 billion shortfall in its customer-segregated funds, which, by law, are supposed to be kept separate from the firm’s money.

Read more at U.S. News & World Report.

For more InsideCounsel coverage of the MF Global collapse, see:

MF Global customers add PricewaterhouseCoopers as defendant in lawsuit

Judge dismisses MF Global employee termination lawsuit

MF Global corporate trustee confident that customers’ funds will be returned

MF Global GC will testify tomorrow at House hearing

MF Global customer says entire $50 million account missing

FBI probe continues MF Global’s downward spiral

Alanna Byrne

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.