MF Global Customers Lose Initial Bid For Priority Status

Law360, New York (February 1, 2012, 7:35 PM EST) -- A New York bankruptcy judge ruled Wednesday that commodity customers of collapsed broker-dealer MF Global Inc., which is being liquidated, should not be allowed to jump ahead of other creditors in the parent company's Chapter 11 case — for now.

U.S. Bankruptcy Judge Martin Glenn rejected a request by one of MF Global's commodity customers, Sapere Wealth Management LLC, that he administer MF Global Holdings Ltd.'s case in such a way that the commodity customers would get paid before all other Chapter 11 creditors.

But Judge...
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