Details emerge from MF Global bankruptcy plans

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011.

NEW YORK (Reuters) - MF Global Holdings revealed new details about its proposed bankruptcy plan in court papers filed on Friday.

Initial members of a director selection committee led by representatives of its hedge fund creditors have been selected. They will select board members for the company as it liquidates.

The initial members are Andrew Shannahan, of Knighthead Capital LLC; Joe Kronsberg, of Cyrus Capital Partners; and Austin Saypool, of Silver Point Capital, according to one of the filings on Friday.

A trust agreement, called the "MF Global Plan Trust," will aid and implement the firm's liquidation plan, according to the filing.

MF Global, run by former New Jersey Governor Jon Corzine, is liquidating after filing for bankruptcy in 2011. Regulators determined that the firm misappropriated money in customer trading accounts to cover liquidity gaps as it teetered on the brink. Corzine has denied any wrongdoing.

The filings also reveal terms of a $70 million senior secured credit facility to finance the liquidation.

The company's creditor payout plan was proposed earlier this year by a group of its hedge fund creditors, led by Silver Point, Knighthead and Cyrus.

Louis Freeh, the trustee liquidating MF Global's estate, cooperated with the hedge funds on later drafts of the plan.

(Reporting by Bernard Vaughan and Nick Brown; Editing by Mohammad Zargham)