NEW YORK Jan 10 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.