MF Global Customers Rip Coverage Deal With Insurance Unit

Law360, New York (February 7, 2012, 10:43 PM EST) -- Commodities customers of collapsed broker-dealer MF Global Holdings Ltd. objected Tuesday to a proposed deal that would allow an MF Global-owned insurer to pay the broker-dealer for potential litigation costs stemming from the collapse, calling such a deal unjust.

Three groups of customers lodged in New York bankruptcy court separate but similar objections to a Feb. 3 agreement between MF Global's Chapter 11 trustee and MFG Assurance Company Ltd., a wholly owned subsidiary of MF Global. The agreement would allow the insurer to make payments it...
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