Collapsed brokerage MF Global Holdings has ended its bankruptcy, saying court-appointed trustee Louis Freeh will step down and hand the remaining wind-down duties to a new three-member board.
On 5 April 2013, MF Global Holdings planned to seek court approval of a plan to liquidate its assets and repay creditors.
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The company’s liquidation assets will finish with a new board in place consisting of Daniel Ehrmann, Nader Tavakoli and Richard Katz.
The commodities broker, led by former New Jersey Gov. Jon Corzine, went into court-protected bankruptcy in 2011 after investors were spooked by its exposure to US$6.3 billion in European sovereign debt.
In April 2013, bankruptcy Judge Martin Glenn approved the Company’s liquidation plan put together by Freeh and MF Global’s creditors.
According to court papers filed in February 2013, the plan could not go into effect until certain conditions were met or waived, one of which was that the estate had enough cash to pay its claims.
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By GlobalDataThe bankruptcy became a political firestorm when investigators found that MF Global had misappropriated money in customers’ trading accounts.
Corzine and his management team, who denied wrongdoing, have faced civil allegations of breaching a fiduciary duty.
