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MF Global Holdings plans to return more client funds

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October 3
6:42 AM 2013

According to a Reuters report, MF Global Holdings Ltd's liquidating trustee had requested a federal bankruptcy judge for permission to return remaining funds to US customers who traded on domestic exchanges.

Court-appointed trustee James Giddens made the request last Wednesday, said the Reuters report. Giddens would reallocate the funds earmarked for general unsecured creditors to MF Global clients. The report went on saying that customers of the brokerage were the top priority of the payback status.

The move could bring closure to clients who had been waiting around two years to get their money back. The customers' funds were tied up when MF Global filed bankruptcy last October 31, 2011. Giddens estimated around USD1.6 billion that went missing from the accounts of the brokerage's clients.

Giddens' lawyers said in a court filing, "The relief sought in this motion, if granted, should allow every one of the more than 26,000 former customers of MFGI with allowed net equity claims to be paid in full before the end of the calendar year."

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