MF Global Holdings plans to seek court approval of a plan to liquidate its assets and repay creditors, reports Reuters.
This step will be the final stage of MF Global’s large and politically-charged bankruptcy.
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The collapsed brokerage would repay the bulk of lender JPMorgan Chase & Co’s claim, and would pay unsecured creditors as much as 34 cents on the dollar under a plan slated to go before Judge Martin Glenn in the US Bankruptcy Court in Manhattan.
Corzine and other MF Global officials were ordered to appear in multiple Congressional hearings, and the FBI, Securities & Exchange Commission (SEC) and at least one Congressional committee launched investigations.
The plan was initially proposed by some of MF’s largest unsecured creditors, led by hedge funds Silver Point Capital, Knighthead Capital and Cyrus Capital Partners. Freeh cooperated with the hedge funds on later drafts of the plan.
Under the deal, MF’s parent entity will subordinate US$275 million of its US$1.887 billion claim against MF Global’s finance unit below JPMorgan’s US$1.2 billion claim against the estate.
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By GlobalDataThe brokerage was found to have misappropriated customer cash to try to plug liquidity gaps as it faltered. While no criminal charges have been filed against Corzine, regulators say his negligent conduct contributed to the firm’s demise.
