MF Global can restitute millions more to customers

U.S. Bankruptcy Judge Martin Glenn approved the distribution request to reinstate $685 million more to customers, bringing them up to 80% of what they are owed (from 72%).

The Judge approved the request after James Giddens, trustee, withdrew a request to have customers sign a release prior to receiving money that would prevent them from suing third parties over their losses. Giddens estimated there is a $1.6 billion gap between available funds and what people are owed.

Judge Glenn wrote in his opinion that Giddens “did not provide any legal authority for requiring commodities customers to assign the customers’ claims agains third parties.”

Commodity customers who traded futures on foreign exchanges will receive payments of $50 million. Customers who traded on U.S. exchanges will receive about $600 million. Holders of physical assets will get about $35 million.

Read more about the judge’s ruling.

Photo: Jayel Aheram

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