MF Global Trustee Asserts Claims Against Brokerage Unit

Law360, New York (January 10, 2012, 10:53 PM EST) -- The trustee overseeing MF Global Holdings Ltd.’s Chapter 11 proceedings said Monday that the company’s brokerage unit, currently in Securities Investor Protection Act liquidation proceedings, should allocate certain estate assets to creditors instead of to customers.

In a statement filed in brokerage MF Global Inc.’s SIPA proceeding in New York, MFGH Chapter 11 trustee Louis J. Freeh said MFGH has “substantial intercompany claims against MFGI” stemming from intercompany loans made to the unit.

The loans are traceable and separate from customer property and should not be...
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