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.