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MF Global customer payback deal earns court approval

Feb 01 2013 Reuters

A bankruptcy judge on Thursday approved a settlement under which many former MF Global customers would get back 93 percent of the value of their accounts, a major step in the wind-down of Jon Corzine's collapsed brokerage. Judge Martin Glenn greenlighted the deal at a hearing in U.S. Bankruptcy Court in Manhattan, about six weeks after trustees for MF's UK and U.S. broker-dealers, as well as its parent, announced the deal to resolve billions of dollars in intercompany claims. "Needless to say, the court is very pleased," Glenn said. "The result that everybody wants to see happen is the maximum amount of funds possible being returned to the estate and being distributed to customers." The agreement avoids litigation in the UK that could have dragged MF Global's liquidation out for years. It will allow James Giddens, the trustee for MF's U.S. trader customers, to return another $500 million to $600 million to those customers. That would increase total payouts to about

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