A bankruptcy court judge reached a settlement deal Thursday that will recover about 93% of the value of original funds that disappeared from MF Global customers after the brokerage's collapse in late 2011.
In a New York bankruptcy court, Judge Martin Glenn approved the order granting the trustee's motion to approve further distributions to former commodity futures customers of MF Global Inc. He also signed off on an order approving the Trustee's settlement agreement with MF Global UK, and an accompanying opinion regarding the settlement.
"The Trustee expects to start making significant additional distributions to former customers with finalized claims within weeks, using the assets that are currently on hand and by reducing the amount of reserves previously being held for disputed claims," a statement on the MF Global trustee website said. "In the future, as the conditions in the agreement with MF Global UK are satisfied and it becomes final and effective and the Trustee receives assets from MF Global UK, the Trustee will make additional distributions."
Judge approves $1.6 billion settlement in MF Global case
Senator Debbie Stabenow, Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry on Friday said the settlement was an important step.
"I am pleased that a settlement has been approved and that customers will get most of their money back," said Chairwoman Stabenow. "I will continue to fight for customers to get more money back, as well as holding wrongdoers accountable. We need to ensure that customers are protected and that the markets are safe and functioning as intended."