Coalition Wants MF Global Placed Under Chapter 7 Bankruptcy
Saying it would allow for a more streamlined liquidation process, the Commodity Customer Coalition, the primary advocate group for former MF Global customers, wants the U.S. Bankruptcy Court to handle the case under Chapter 7 of the bankruptcy code. Chapter 7 is designed specifically for liquidation of assets and would preserve more potential payback for customers. The coalition is hoping the CFTC will file the motion itself.
MF Global Holdings Ltd collapsed after it revealed exposure to risky European sovereign debt. According to monthly expense filings, MF Global has spent more than 11-million dollars since filing for bankruptcy on October 31. It is surviving on about 26-million in cash that had been pledged to JPMorgan Chase & Co as collateral on loans.