| NEW YORK
NEW YORK Dec 4 The trustee overseeing the
liquidation of MF Global's failed futures brokerage said he
expects the more than 28,000 customer claims that have been
filed to be fully resolved within the next few months, according
to a report filed in court on Tuesday.
However, further distributions to those customers will hinge
largely on the outcome of pending claims against the failed
brokerage by its parent company, MF Global Holdings Ltd
, and its British affiliate, according to the progress
report from trustee James Giddens.
"We are in a critical phase of negotiation and potential
litigation right now," said Kent Jarrell, a spokesman for
Giddens. "The result of this will determine when and how much in
additional distributions we can send back to the former
customers, and define the parameters and the size of the claims
against the general estate."
In his report, Giddens said that of the more than 28,000
claims filed by the brokerage's commodities and securities
customers, all but 200 have been fully resolved. Giddens said he
expects the remaining claims to be resolved in the next few
A resolved claim means that the customer and trustee have
reached an agreement regarding the amount to be paid.
According to the report, more than 27,000 claims were filed
by commodities customers. Of those, 26,610 were allowed -
meaning that they have been deemed valid by the trustee
-representing a value of approximately $6.7 billion.
Of the more than 1,000 claims filed by securities customers,
approximately 207 were allowed to proceed, with an estimated
value of $276 million, the report stated.
So far, Giddens has returned approximately $4.7 billion to
commodities customers hit by the brokerage's collapse.
MF Global's collapse exposed what Giddens estimated to be a
$1.6 billion shortfall in customer funds. MF Global filed for
bankruptcy in October 2011.