Judge Frees Up $2 Billion in MF Global Deal
Bankruptcy judge loosens purse strings again, raising cash released to 72% of what is believed to be client money.
Compiled by staff
Published: Dec 10, 2011
The judge overseeing the bankruptcy of MF Global has approved releasing roughly $2 billion more in frozen funds to customers of the firm. This could be good news for farmers and elevators with cash tied up due to the unexpected bankruptcy.
U.S. Bankruptcy Judge Martin Glenn issued an order Friday that clears the way for customers to regain some of their money.
It's the third transfer of funds to MF Global customers since the firm filed for bankruptcy protection on Oct. 31. The transfer will bring the total distributed to customers so far to about $4 billion.
Once completed, MF Global commodities customers will have recovered about 72% of their money, according to the trustee for the liquidation of the brokerage firm.
The frozen funds are separate from the $1.2 billion or more that is estimated to be missing from MF Global customer accounts. Former CEO of MF Global, Jon Corzine, testifed on Capitol Hill Thursday regarding the missing funds and stated he had no knowledge of where the funds went.
He noted during his testimony that he didn't "intentionally" transfer segregated funds.
Story includes information from Associated Press.
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