By Tom Hals

Jan 11 (Reuters) - Former futures and commodities customers of failed MF Global Inc could recover 93 percent of what they are owed by the former broker, according to court documents filed late Thursday by the trustee charged with returning client money.

The trustee, James Giddens, has already returned about 80 percent of the money in customer trading accounts.

More money has become available for repaying customers thanks to settlements in December that resolved disputes over how to divide funds between various MF Global entities.

Giddens' updated estimate followed on the heels of a proposed repayment plan by a group of MF Global bondholders. The bondholders on Thursday outlined a plan that provided a full recovery for customers while they would receive a 42 percent repayment on their bonds.

Giddens' updated distribution estimate was contingent on approval of the December agreements by the U.S. Bankruptcy Court in New York. A hearing has been scheduled for Jan. 31.

MF Global improperly used customer money to cover its liquidity needs after investors were spooked by its exposure to risky European debt in 2011. That created a roughly $1.6 billion gap in customer accounts when the company filed for bankruptcy in October 2011, according to a June report by Giddens.

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