Reuters reports that most former clients of MF Global have received about 72 cents for every dollar they had invested with the futures broker. MF Global filed for bankruptcy last October and investigators have been working to find up to 1.6 billion dollars in frozen funds. But, investors are growing more optimistic about the prospects for recovering their money.
Former customers who want or need immediate payment can sell those claims to bidders who hope to make a profit on further recoveries through the bankruptcy process. For example: Barclays Plc, the Seaport Group and other entities, had been offering former customers around 90 cents on the dollar, in return for taking over their claims. Reuters reports that bids have steadily climbed, and last week, Barclays boosted its bid to 92 cents.
There is no public market for bankruptcy claims. Bidding takes place by emails and phone calls to individual customers, and in meetings with brokerage firms. |