Tuesday, 8 November 2011

Day 8: still totally in the dark...

The meeting of the creditors of MF Global Holdings Ltd was held at the Millenium Hilton yesterday (http://www.justice.gov/ust/r02/manhattan/org_meeting.htm) and apparently the U.S. Trustee's office appointed a committee of creditors of MF Global Holdings Ltd with JPMorgan Chase & Co, Bank of America, Wilmington Trust Company, Elliott Management Corporation and Caplin Systems as its members (see http://www.reuters.com/article/2011/11/08/mfglobal-bankruptcy-creditors-idUSN1E7A627A20111108).

However, because MF Global FX Clear LLC (along with numerous other subsidiaries of MF Global Holdings Ltd) has not been named so far in any bankruptcy proceedings, as it stands right now, we, the creditors/customers of MF Global FX Clear LLC have absolutely no representation, we have no clue whatsoever as to what has happened either to our funds deposited with MF Global FX Clear LLC or to our open trades with MF Global FX Clear LLC. In fact, there is now nobody answering the phones there as (understandably) employees are now focusing on their future and trying to find alternative employment (and even when they were answering the phones last week, they were sadly not in any position to provide us with any information).

It is important for all of us to understand that as customers of the subsidiaries of MF Global Holdings Ltd (or, as in my case, of a subsidiary of a subsidiary of MF Global Holdings Ltd!!!) we are NOT being represented by the committee set up yesterday to look after the interests of the creditors of the parent company MF Global Holdings Ltd (and rest assured that JPMorgan, Bank of America, etc. will look after themselves and not leave anything for us down the pecking order...).

So, we need to get organised and represent ourselves as the creditors of all the MF Global entities that (1) have NOT so far been named in the Chapter 11 filings and (2) have no representation by a trustee (as in the case of creditors of MF Global Inc.).

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