| NEW YORK, March 15
NEW YORK, March 15 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
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.