Trader Says MF Global Misused $42M Collateral Account

Law360, New York (August 16, 2012, 7:50 PM EDT) -- Commodities trader Mercuria Energy America Inc. on Thursday filed a suit claiming a unit of bankrupt MF Global Holdings Ltd. has demanded repayment of a $20 million loan despite misappropriating funds in a collateral trading account valued at $42 million.

In a complaint filed in New York bankruptcy court, Mercuria said MF Global Finance USA Inc., known as FinCo, sent a demand letter in April requesting payment of the $20 million principal and interest, despite the fact that the money that should be in Mercuria's trading...
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