KPMG partners have been appointed
administrators of bankrupt financial derivatives broker-dealer MF
Global in the first use of the Special Administration Regime.
The High Court named Richard Fleming, Richard
Heis and Mike Pink as special joint administrators.
The Special Administration Regime 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.
This is in addition to normal administrator
functions that companies should be rescued or wound up in the best
interests of the creditors.
Job losses likely
KPMG special joint administrator Fleming
warned redundancies would be likely at MF Global.
“Against the backdrop of challenging market conditions and the
Eurozone crisis, the financial position of MF Global UK has
significantly deteriorated in recent weeks. Following the
filing for Chapter 11 by MF Global Holdings USA Inc, it would not
be viable to operate MF Global UK on a standalone basis,” he
said.
“The UK and overseas operations of MF Global
UK have ceased trading and the joint special administrators are
working with the regulatory authorities, clearing systems and other
counterparties in relation to the orderly wind down of the trading
operations.”
MF Global filled for chapter 11 bankruptcy in
the US earlier this
week as a result of buying a large amount of European sovereign
debt and a sudden loss in profits.
The bankruptcy filing is said to have listed
MF Global US with $100m to $500m in assets and $10m to $50m in
estimated liabilities.
The subsequent collapse of the companies UK
operations, MF Global UK, lead to the loss of more than 700 jobs in
the companies London office.
Deloitte has been appointed administrator of
MF Global’s Australian arm, according to the regulator Australian
Securities & Investment Commission.
