Customers of bankrupt MF Global Singapore to be repaid in full, says KPMG

Liquidators recovered a total of US$467.2m.

The liquidators of MF Global Singapore revealed that over 4,000 customers of the collapsed brokerage firm can be repaid in full.

MF Global Singapore is the local arm of an international brokerage firm which collapsed in 2011. Its ultimate parent, MF Global Holdings, had filed for Chapter 11 Bankruptcy in the United States. 

KPMG, which served as the liquidators, said in a release that they have recovered a total of US$467.2 million of customer segregated funds. 

KPMG also said that over 250 unsecured creditors will also potentially receive 100% of their admitted unsecured claims, based on latest estimates. Previously, they could only expect to recover 91.6 cents to the dollar at best.

“We are pleased to be able to reach the best possible outcome for the affected customers, securing the 100 percent return of funds to them, so that they can get closure on this matter,” said Bob Yap, Lead Liquidator and Head of Advisory at KPMG in Singapore.

“We can also expect creditors to have a good chance of having their admitted debt repaid in full, and we are working towards a completion of the administration of the liquidation and payment of final dividends to unsecured creditors,” Yap added.

The full recovery of proprietary funds for customers was made possible after the liquidators successfully resolved and negotiated for the return of customers’ funds from insolvent MF Global affiliates in jurisdictions including Australia, Hong Kong, the United States of America and the United Kingdom, the release said.