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'Special' KPMG administrators appease clients of MF Global UK 10 January 2012

The meeting was held just hours after The Daily Telegraph had printed an article citing ‘concerns’ about the ‘slow’ progress of the administration and the potential cost of the administration.

This followed the news that KPMG has (so far) charged fees of around £14m for handling the case.

KPMG released an update following the meeting saying that over 800 creditor representatives attended the meeting and voting overwhelmingly in favour of the proposals.

Among the achievements it listed were that the administrators had recovered the majority of the US $100 million segregated client assets for distribution to clients of MFG UK.

The group also acknowledged that they had now analysed the validity of claims against 96 per cent of those client assets by market value.

In addition, KPMG said it had successfully recovered £594 million of the company’s client money balances with the remainder of the monies being held by affiliates including MF Global itself.

The administrators will be updated the court during the week ending 3 February regarding the distribution of these.

Richard Heis, joint administrator of MF Global, said the creditors meeting had marked a milestone in the case.

He added: “Both clients and creditors voted overwhelmingly in favour of our proposals, which include the expectation that we will be able to make an interim distribution of client monies within the next few weeks.”

By Joe McGrath



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