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
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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