Administrators KPMG UK said JP Morgan has
agreed to buy all shares of bankrupt financial derivatives
broker-dealer MF Global UK operations.
The Big Four firm, a court appointed special
administrator, said the banking giant agreed to buy 625,000
ordinary ‘A’ and ‘B’ shares at the London Metal Exchange (LME)
following a “competitive bidding process”.
MF Global UK joint special administrator
Richard Heis said the sales process for various aspects of the MF
Global UK business continues apace and “we are in negotiations with
several parties to this end”.
“In the mean time, we have prepared a
timeline for the return of client assets and client monies,” Heis
added.
The price of the sale has not been disclosed,
however according to some news reports JP Morgan is to pay £25m
($39m).
MF Global filled for chapter 11 bankruptcy in
the US in early November as a result of buying a large amount
of European sovereign debt and a sudden loss in profits.
The subsequent collapse of the companies UK
operations led to the loss of more than 700 jobs in its London
office.
KPMG UK is the first firm to conduct an
administration under the Special Administration Regime, which was
set up in the wake of the Lehman Bros collapse, and is different to
other corporate administrations because it requires administrators
to focus on a swift return of client assets and the timely
engagement with authorities.
