| NEW YORK, April 3
NEW YORK, April 3 Former customers of MF Global
Holdings Ltd's bankrupt brokerage will recoup all $6.7 billion
they are owed following the completion of a payout that will
begin on Friday, its trustee said.
Nearly 26,500 former commodities and securities customers of
the MF Global Inc brokerage will share in the payout, which will
be made over the next several weeks, the trustee, James Giddens,
said on Thursday.
The payout comes nearly 2-1/2 years after the parent company
once run by Jon Corzine, who had previously been a co-chairman
of Goldman Sachs and governor of New Jersey, filed for
Chapter 11 protection.
It often takes customers and creditors of bankrupt companies
years to recoup all or some of their money.
Lehman Brothers Holdings Inc, the Wall Street bank that
filed for bankruptcy on Sept. 15, 2008, on Thursday is returning
$17.9 billion to creditors, boosting its payout so far to $80.4
billion in five distributions.
In November, U.S. Bankruptcy Judge Martin Glenn in Manhattan
approved a plan to fully repay MF Global Inc customers,
including with money once earmarked for unsecured creditors who
were not customers.
"Checks are going in the mail that will make all public
customers of MF Global Inc 100 percent whole," Giddens, a
Hughes, Hubbard & Reed partner who leads that firm's corporate
reorganization and bankruptcy group, said in a statement.
Some of the money going to former customers has come from
settlements with onetime MF Global counterparties JPMorgan Chase
& Co and CME Group Inc. Additional funds may be
received from a British unit, MF Global UK Ltd, Giddens said.
Giddens said 24,020 former U.S. commodities futures and
options customers would recover $5.4 billion.
He said another $880 million would go to 2,047 former
foreign commodities futures and options customers, and $376
million would be returned to 428 former securities customers.
MF Global collapsed amid worries about a $6.3 billion bet by
Corzine on European sovereign debt and that money from customer
accounts had been used to cover liquidity shortfalls.
Corzine and other former MF Global officials remain subject
to other lawsuits by investors, customers and regulators.
The cases are In re: MF Global Inc, U.S. Bankruptcy Court,
Southern District of New York, No. 11-02790; and In re: MF
Global Holdings Ltd in the same court, No. 11-15059.
(Reporting by Jonathan Stempel in New York; Additional
reporting by Tom Hals in Wilmington, Delaware; Editing by Lisa