The Business Times
Sunday, Oct 14, 2012
MF Global Singapore plans to declare an interim dividend for creditors in the fourth quarter of this year, in what will be the first payout for creditors of the failed futures brokerage here.
The amount and the specific distribution plan were not disclosed in an announcement on Thursday.
Liquidators Chay Fook Yuen, Bob Yap and Tay Puay Cheng of KPMG in Singapore said in the announcement that they have contacted creditors who have yet to submit proofs of claims to do so.
It is not clear how much creditors have claimed against MF Global Singapore, but at a creditors' meeting in May the liquidators estimated the claims to be about US$83 million.
Liquidators said at that time that creditors should expect to recover between 61 and 90.8 per cent of what they are owed.
More than 98 per cent of customers have also been paid US$294 million of their segregated and proprietary funds so far as part of a court-approved interim payment, the liquidators announced.
MF Global Singapore plans to pay up to US$350 million of customers' monies in that payment plan for customers.
MF Global Singapore said it has recovered about US$427 million of customers' and proprietary funds so far.
The total amount of money that belonged to customers is estimated to be north of US$450 million.
About US$58 million of customer segregated and proprietary funds remain locked up with affiliates of MF Global Singapore around the world.
MF Global Singapore said it is currently verifying claims for itself and its clients with the Australian affiliate.
In the UK, a court hearing will take place later in the month to determine that appropriate valuation date for clients' claims.
MF Global Hong Kong, meanwhile, has told the Singapore liquidators that MF Global Singapore did not qualify to receive an initial interim payment of customers' segregated funds.
The US administrators have said they will allow in full MF Global Singapore's claims for customer segregated and proprietary funds, but verification and distribution plans are ongoing.
MF Global Singapore underwent voluntary winding up in November 2011 after its US parent filed for bankruptcy.
The Singapore affiliate had more than 6,000 customers with complex trading positions in futures and options, foreign exchange, bullion and contracts for differences, MF Global Singapore said.
"We are pleased that despite the complexity involved in liquidating the company, we anticipate to be able to declare the first interim dividend to creditors in the fourth quarter of 2012," Mr Yap said in a statement.
"At the same time, we have managed to pay almost every customer who qualifies for the first interim payment of customer segregated and proprietary funds. Customers and creditors of the company can rest assured that my team and I will continue to work tirelessly to recover all the funds that are recoverable."