On Friday 12/9/11, Judge Glenn approved a large, third bulk distribution to MF Global customers that will get all customers to the point where they will each have gotten back roughly 72% of the value of their assets in domestic futures accounts. Included in the 72% calculation will be US and foreign currency that was held in domestic accounts, T-Bills, warehouse receipts and physical commodities. Futures contracts will be valued as of their transfer or liquidation price, so that any gains or losses after 10/31/11 will be reflected in the calculation. What will not be included are any amounts held for trading foreign futures – recovery of those amounts will take more time and distributions will come later.
This distribution will begin immediately and most of the money will be distributed in a matter of days, although some amounts will involve more complex calculation and may take as long as 2 to 4 weeks. The distribution should involve cash transfers into the new FCM accounts already established for MF Global customers. For customers with physicals, they can communicate directly with the trustee to coordinate a method for taking possession of the physicals, subject to the requirement that they not receive more than 72% of their account value.
Neal R. Stevens
Of Counsel
Schuyler, Roche & Crisham, P.C.
nstevens@SRCattorneys.com
312 565.1045 tel (chi)
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