MF Global creditors propose liquidation plan
NEW YORK Jan 10 (Reuters) - Unsecured creditors of MF Global Holdings Ltd on Thursday proposed a liquidation plan for the company's assets that could pay the brokerage's former customers in full.
The ad hoc group, led by Silver Point Capital, filed the proposal in U.S. Bankruptcy Court in Manhattan, saying former traders who held accounts at the commodities broker could receive full payback, while some unsecured bondholders of the MF parent could recover as much as 42 percent of their claims.
MF Global declared bankruptcy in November 2011 after its exposure to risky European sovereign debt spooked investors. The case became a political firestorm after federal investigators discovered that money in customer trading funds had gone missing in the collapse.
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