Almost $1 billion in MF Global UK client assets recovered

Findings of six-monthly progress report published by special administrator of defunct broker

KPMG, the special administrators of MF Global UK, said some $923 million in client assets and monies have been recovered, in its six-monthly report published on November 29.

"We have seen some substantial progress made since our last progress report six months ago. In excess of £1 billion of assets have now been recovered into the house estate, while client assets and monies of some $923 million have been recovered," says Richard Heis, joint special administrator of MFG UK and restructuring partner at KPMG.

"Statements in draft or final form have been sent to 95% of all trading customers, and over $179 million has been distributed to them. We have resolved approximately half of the 1,300 disputed claims regarding segregated and non-segregated account classifications."

Heis says 70 MF Global UK employees have been retained until at least April 30, 2013 to work alongside a KPMG team on this complex case.

Key updates in the report:

Returning client monies/assets

• The special administrators have recovered in excess of £1 billion into the house estate (previous report: £509 million)

• Recoveries of client monies and assets stand at in excess of $923 million (previous report: $918 million)

• As at October 30, 2012, $179.3 million had been distributed to 2,362 clients (previous report: $92.1 million)

• Statements in draft or final form have been sent to approximately 95% of all trading customers

• As at October 30, 2012, £23.6 million of client assets had been returned to clients

• A total of 125 client asset, client money and creditor claims with a value of approximately $5 billion have been rejected by the special administrators

Segregated versus non-segregated issues

• The special administrators, working in conjunction with MFG UK management and staff, have resolved 650 out of approximately 1,300 disputed claims (c.49%)

• The remaining disputed accounts are under investigation, and the special administrators are working closely with legal counsel to determine the appropriate status of these accounts