November 8, 2011 / 5:06 AM / 6 years ago

JPMorgan, BofA on MF Global creditors' committee

NEW YORK, Nov 7 (Reuters) - JPMorgan Chase & Co , Bank of America and Wilmington Trust Company were among companies appointed to the unsecured creditors’ committee of collapsed futures brokerage MF Global late on Monday.

Elliot Management Corporation and Caplin Systems were also named to the committee by the U.S. Trustee’s office, which oversees bankruptcies and is part of the Department of Justice.

Bankrupt companies provide funding to unsecured creditor committees to hire attorneys and financial advisers to review a company’s reorganization plan.

JPMorgan is the agent for MF’s $1.2 billion syndicated line of credit. It was named to the committee despite also having a $300 million secured loan against MF’s brokerage unit, an interest that could conceivably position it against other unsecured creditors in certain circumstances.

The trustee’s office held a meeting earlier on Monday to appoint the committee and allow lawyers, investment bankers and other professionals to interview to represent the committee in bankruptcy. But an attorney for the trustee surprised attendees with an announcement around noon that the committee would not be appointed until much later in the day.

Such delays are unusual in creditors’ committee meetings. A representative for the trustee’s office did not comment on the reason for the delay.

MF Global filed for bankruptcy protection Oct. 31 after last-minute efforts to sell off assets were derailed by the discovery of $633 million in missing client money. The funds have yet to be located.

Former New Jersey Gov. Jon Corzine, who took the reins of the brokerage in 2010 after losing his reelection bid, bet big on European debt but watched investors flee when the scope of the company’s European exposure became clear. He stepped down last week.

The bankruptcy is the seventh-largest in U.S. history, according to BankruptcyData.com and Reuters data.

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