MF Global MF GLOBAL SINGAPORE PTE. LIMITED
Company Registration No. 198403253G
(In Creditors' Voluntary Liquidation)
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581



Latest Updates



11 January 2014

UPDATE ON PROGRESS TO CUSTOMERS

SINGAPORE, 11 January 2014

1.    Further to the Liquidators’ letter of 12 April 2013 to customers of MFGS, the Liquidators have prepared the following brief update to customers on the progress of the following matters:-

  1. the status of the Interim Distribution of customer segregated funds sanctioned by the High Court of Singapore on 8 February 2012;
  2. issuance of final statements of account to customers; and
  3. further recovery of customer segregated funds.

A.    Status of the Interim Distribution of Customer Segregated Funds

2.    As at 31 Oct 2013, following upon the Singapore Court’s sanction of the Interim Distribution of up to US$350 million of customer segregated funds collected by the Liquidators, the Liquidators have effected payment of a total of about US$295 million to 3,408 qualified customers (who have submitted their Payment Details Form).

3.    The remaining 835 qualified customers, who have yet to be paid pursuant to the Interim Distribution, are primarily those who have been contacted numerous times and have yet to submit their Payment Details Form (which was forwarded to customers under cover of the Company’s letter of 11 January 2012) to the Liquidators. The submission of such Payment Details Form is necessary to ensure that the identity and payment instructions of the relevant customers are accurate and current. If you qualify to receive interim payment under the Interim Distribution, but have yet to submit your Payment Details Form, kindly do so in order to facilitate the interim payment to you. The above Form is available for download at Payment Details Form.pdf.

4.    Pending further recovery of the remaining customer segregated funds, the Liquidators are currently unable to give a meaningful estimate of when they expect to be in a position to effect any further or final distribution of customer segregated funds to qualified customers. The Liquidators seek your understanding and patience in this regard.

B.    Customers’ Final Statements of Account

5.    The Liquidators have received all outstanding final pricing information from MFGS’ counterparties, and have completed the verification and reconciliation work in respect of all customers’ positions.

6.    The Liquidators have also now distributed to all customers their final statements of account setting out finalized close-out pricing information.

C.    Recovery of Customer Segregated Funds

7.    An estimated US$47 million relating to claims for customer segregated funds remains uncollected, primarily from the following affiliates of the Company:-

  1. MF Global Australia Limited (In Liquidation) (“MFGA”);
  2. MF Global Hong Kong Limited (In Liquidation) (“MFGHK”);
  3. MF Global Inc (“MFGI”); and
  4. MF Global UK Limited (In Special Administration) (“MFGUK”).

8.    The Liquidators continue to pursue the expeditious recovery of the above uncollected customer segregated funds. To this end, the Liquidators have been engaged and will continue to engage in dialogue with the administrators/liquidators of the respective affiliates with a view to expedite recovery of such funds. Their ability to achieve such return, however, has been hampered by various factors not within their control, and the process of achieving such return is far from straightforward and involves complex issues relating to the entitlements of the respective parties in respect of customer segregated funds held by each of them, as well as dependent on the laws and arrangements of the respective jurisdictions. In this regard:-

  1. MFGA: the Liquidators have been and continue to be in discussions with the liquidators of MFGA to explore an expedited return of customer segregated funds. In this regard, the return of funds by MFGA is intricately intertwined with the return by MFGS to MFGA of customer segregated funds which MFGS had withheld pending recovery from it of its own funds, as well as issues relating to the classification of one of MFGA’s trading account with MFGS. Accordingly, the Liquidators have sought to explore the most viable, and time and cost efficient means to achieve progress in procuring the return of such funds, and have been engaged in discussions on the same with MFGA. To date, parties have agreed on the trade–related intercompany balances;
  2. MFGHK: MFGS has entered into an agreement with MFGHK for the mutual interim partial return of customer segregated funds, which agreement is subject to the sanction of both the Hong Kong and the Singapore Courts. Pursuant to the above agreement, MFGS would receive a net amount of about US$6.4 million in customer segregated funds from MFGHK. The timing of the mutual interim partial return of customer segregated funds is however dependent on MFGHK obtaining approval of the same from the Hong Kong Courts. In this regard, the Liquidators understand that MFGHK’s application has been fixed for hearing on 6 March 2014. As regards the requisite Singapore Court approval, this was obtained by the Liquidators in September 2013;
  3. MFGI: the Liquidators are in advanced stages of negotiating an agreement with MFGI regarding the collection of customer segregated funds of MFGS held by MFGI; and
  4. MFGUK: the Liquidators have also been and continue to be in separate discussions with the administrators of MFGUK to explore an expedited return of customer segregated funds. Similarly, the return of funds by MFGUK is intricately intertwined with the return by MFGS to MFGUK of customer segregated funds which MFGS had withheld pending recovery from it of its own funds, as well as issues relating to the classification of MFGUK’s claim in respect of one of its trading account with MFGS. To date, parties have agreed on the trade-related intercompany balances.

9.    Set out below are the latest available estimated recovery rates for claims for customer segregated funds as indicated by the above affiliates:-

  1. MFGA: the estimated recovery rate for customer segregated funds applicable to customers of MFGA ranges from 89% to 98%;
  2. MFGHK: the estimated recovery rate for customer segregated funds applicable to customers of MFGHK of 97%;
  3. MFGI: MFGI expects to distribute 100% of customer segregated funds to its customers, subject to determination of an appeal lodged by certain creditors of MFGI against a Court Order approving such full distribution; and
  4. MFGUK: the estimated recovery rate for customer segregated funds applicable to customers of MFGUK ranges from 80% to 85%.

10.    Whilst the Liquidators continue their efforts in working towards recovery of the above uncollected customer segregated funds, this process will continue to take some time, not least because it also involves substantial issues which require resolution or agreement. It is hoped that significant progress would be made in this regard in the course of this half, and the Liquidators will keep customers updated of such development.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


26 September 2013

UPDATE ON LIQUIDATORS’ APPLICATION TO COURT

SINGAPORE, 26 September 2013 - Further to the Liquidators’ update on 8 August 2013 below, the Liquidators' application for interim payment of fees and expenses was heard by the High Court of Singapore on 1 August 2013, 21 August 2013, 29 August 2013, and 10 September 2013. The Liquidators had, by such application, sought interim payment of 60% of their and their Singapore legal counsel's fees as well as all disbursements and GST incurred for work performed in administering, collecting and dealing with the customers segregated funds during the period from 1 November 2011 to 31 March 2012. The application is intended for a release of cash flow out of the customers segregated funds pending the finalization of the process of administration, collection and return of customer funds and any necessary assessment of the relevant fees and expenses.

Certain customers of MFGS had appeared at the above hearings to object to such interim payment. In particular, these customers had contended that the Liquidators' fees and expenses in administering, collecting and dealing with customer segregated funds ought to be borne by the liquidation estate and not out of the customer segregated funds. On this basis, these customers argued that the Order dated 8 February 2012 (the "8th February Order") where the High Court of Singapore directed that such fees and expenses be borne out of the customer segregated funds should be varied. The High Court of Singapore did not accept these objections, and reaffirmed the 8th February Order that the fees and expenses of the Liquidators be borne out of the monies standing in the customer segregated funds. The High Court of Singapore further directed these customers to bear the Liquidators' legal costs and expenses incurred in relation to the objections raised at a fixed sum.

Accordingly, the High Court of Singapore ordered cash flow release out of customer segregated funds for interim payment of costs incurred with regard to the administration, collection and management of such funds ("Costs"), as sought. Details of such interim payment are set out in the Liquidators' letter dated 12 April 2013 to customers of the Company.

Should any MFGS customer have any enquiry in relation to the above interim payment, please submit such enquiry by way of an electronic mail stating your full name, account number, address, and identification or passport number, to sg-mfglobal@kpmg.com.sg with the subject header “Interim Payment of Costs”.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


8 August 2013

FURTHER UPDATE ON LIQUIDATORS’ APPLICATION TO COURT

SINGAPORE, 8 August 2013 - Further to the Liquidators’ update on 17 July 2013, the Liquidators' application for an interim release of payment out of the customers' segregated accounts for costs incurred with respect to the administration, collection and management of customer funds was heard before the Honourable Justice Belinda Ang in chambers on 1 August 2013.

Two customers of MFGS, Vintage Bullion DMCC and MF Global Futures Trust Co., Ltd, had also applied to be joined as parties to the proceedings, and made an application for variation of the Order of Court dated 8 February 2012. These two applications were also heard before the Honourable Justice Belinda Ang on the same day.

At the above hearing, the Court granted these two customers leave to be joined as parties to the proceedings. As the other matters could not be fully disposed of on the same day, the Court has ordered that the hearing of the above applications to continue on a date to be fixed by the Court. We have been informed by the High Court of Singapore that the applications have been fixed for hearing on 21 August 2013.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


17 July 2013

FURTHER UPDATE ON LIQUIDATORS’ APPLICATION TO COURT

SINGAPORE, 17 July 2013 - Further to the Liquidators’ update on 8 May 2013, we have been informed by the High Court of Singapore that the application for an interim release of payment out of the customers' segregated accounts for costs incurred with respect to the administration, collection and management of customer funds has been re-fixed for hearing on 1 August 2013.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


10 May 2013

FURTHER UPDATE ON LIQUIDATORS’ APPLICATION TO COURT

SINGAPORE, 10 May 2013 - Further to the Liquidators’ updates on 12 April 2013 and 8 May 2013, MFGS’ customers who require further information on the Liquidators’ application to the High Court of Singapore may submit their requests by way of an electronic mail stating their full name, account number, address and identification or passport number to sg-mfglobal@kpmg.com.sg with the subject heading “Customer Query” by close of business of 21 June 2013.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


8 May 2013

UPDATE ON LIQUIDATORS' APPLICATION TO COURT

SINGAPORE, 8 May 2013 - Further to the Liquidators' update on 12 April 2013, the Liquidators have since filed the application for an interim release of payment out of the customers' segregated accounts for costs incurred with respect to the administration, collection and management of customer funds to the High Court of Singapore on 19 April 2013. We have recently been informed by the Registrar that the application will be heard on 19 July 2013.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


31 January 2013

MEDIA RELEASE

LIQUIDATORS RAISE ESTIMATED CUSTOMER AND CREDITOR RECOVERY RATES BY UP TO 7.2 CENTS TO THE DOLLAR

  • Customers' best case scenario estimate up to 99.6 cents to the dollar
  • Creditors' best case scenario estimate up to 91.6 cents to the dollar

SINGAPORE, 31 January 2013 - Liquidators of MF Global Singapore Pte. Limited (in Creditors' Voluntary Liquidation) said today that they have raised the estimated rates at which customers and creditors of the company can recover their money, by as much as 7.2 cents to the dollar.

Customers can now expect to recover at least 97.7 cents to the dollar and as much as 99.6 cents to the dollar, while unsecured creditors can expect a recovery of between 68.2 cents to the dollar to 91.6 cents to the dollar. The actual recovery rates in respect of customer segregated funds may differ between customers trading in the various products and the actual payout to individual customers and creditors may vary depending on the actual recovery from the MF Global Affiliates.

The Liquidators, Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng, speaking at the Annual General Meeting of Contributories and Creditors which updated creditors on the liquidation progress, said that having considered the current projected liquidation costs and with more favourable information and estimates available from the various MF Global affiliates, they were in a better position to estimate the rates of recovery for customers and unsecured creditors of the company.

In May 2012, the Liquidators had announced that customers could recover between 93 to 97 cents to the dollar under a pessimistic and optimistic scenario, a position that has now been raised by 4.7 and 2.6 cents to the dollar, respectively. There was also good news for the creditors, whose worst and best case scenario estimates are now up 7.2 and 0.6 cents from 61 and 91 cents to the dollar, respectively, in May 2012.

Mr Yap, said: “We have been working very hard to get as much money back for the customers and creditors of the Company. It is very pleasing to be able to announce increases in the expected recovery rates

“Significant amounts of work have been invested in the liquidation and we are also glad that we have been able to commence payment of the First Interim Dividend to unsecured creditors.

“We are in various discussions with MF Global affiliates to explore a speedy recovery of funds, and are hopeful to reach an agreement for settlement and to maximise distribution of collected customers’ segregated and proprietary funds to the customers of MFGS and MFGS’ assets to its creditors.”

In the course of updating the creditors on the work carried out since the commencement of the liquidation of the Company on 1 November 2011, the Liquidators also said that about US$62 million of house funds and US$427 million of customer segregated and proprietary funds have been recovered to date from local and overseas financial institutions, counterparties, clearing members and clearing houses.

Some US$54 million of house funds remain to be recovered from MF Global affiliates as well as from bank accounts of the Company’s branch in Taiwan. US$52 million of customer segregated and proprietary funds are still locked up with affiliates of the Company in the UK, Hong Kong, Australia, and the US.

These announcements followed a first and final dividend of 100% of all admitted preferential claims, and a first interim dividend of 15 cents to the dollar of all admitted ordinary claims of unsecured creditors, which had been declared on 7 December 2012 by the Liquidators. The Liquidators commenced payment of this first interim dividend to unsecured creditors on 17 December 2012.

MF Global Singapore is the first affiliate to declare an interim dividend to unsecured creditors as well as to fully settle all preferential claims.

Meanwhile, for customers, the High Court of Singapore had earlier approved an interim distribution of up to US$350 million of customer segregated and proprietary funds collected by the Company. To date, more than 99% of customers who qualified to receive this interim payment of their respective provisional entitlement to the collected customer segregated and proprietary funds (and who submitted their payment details) have been paid a total of about US$294 million. The remaining claims include those of (i) customers who have yet to submit their payment details to the Company and (ii) claims of MF Global affiliates that have been set aside pending reconciliation of inter-affiliate balances

The Liquidators are currently in the process of performing a final reconciliation of customers’ positions, a process that had, until recently, been hampered by outstanding pricing information from the various affiliates. Other than pricing information from MF Global UK Limited (In Special Administration)—which remains the subject of ongoing legal proceedings concerning the determination of the valuation date to be used—all the other MF Global affiliates have now provided the Liquidators with their close out prices.

The payment of the remaining balance of customers' proprietary claims on customer segregated funds is subject to the recovery of outstanding uncollected customer segregated funds and final close-out information due from MF Global UK Limited (In Special Administration).

The Liquidators continue to work diligently to recover the remaining uncollected customer segregated and proprietary funds and Company’s funds and assets and are hopeful to reach some significant milestones in the second half of 2013, subject to the success of negotiations with the respective MF Global affiliates and the applicable law in the respective jurisdictions. The Liquidators will continue to provide regular updates to the customers and creditors on the status of the liquidation.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


07 December 2012

MEDIA RELEASE

UNSECURED CREDITORS OF MF GLOBAL SINGAPORE TO GET FIRST INTERIM DIVIDEND OF 15 CENTS TO THE DOLLAR

  • Unsecured creditors to receive dividend from 17 December 2012
  • MF Global Singapore among the first in the failed Group to pay dividends

SINGAPORE, 7 December 2012 - Unsecured creditors of MF Global Singapore Pte. Limited (In Creditors' Voluntary Liquidation) will get a first interim dividend of 15 cents to the dollar from 17 December 2012 onwards, the Company’s Liquidators announced today.

The Liquidators, Messrs, Bob Yap Cheng Ghee, Tay Puay Cheng and Chay Fook Yuen, said that creditors whose claims have been adjudicated and admitted, will receive a Notice of Dividend and instructions regarding the payment of dividend.

The interim dividend rate has taken into account claims that have not been accepted by the Company but are subject to appeal, as well as certain other unasserted claims. The rate also included other claims which are pending resolution by the Liquidators and which may involve a determination by the Court.

Mr Bob Yap said: "The payment of this first interim dividend to creditors is a significant milestone in the liquidation of MF Global Singapore. We are aware of the creditors’ desire to receive payment as soon as possible, and we have been working expeditiously towards this goal.

“We are pleased that MF Global Singapore is among the first few MF Global entities, if not the first, to declare an interim dividend to unsecured creditors. We will continue to work towards recovering as much money as quickly as possible for the Company's creditors.”

MF Global went under on 1 November 2011 after its ultimate parent, MF Global Holdings Ltd., filed for Chapter 11 bankruptcy in the United States of America. The Chapter 11 filing triggered a series of insolvencies of MF Global affiliates around the world, leading to force-closures of customers’ trading positions, as well as restricted transfers of positions and margins. At the time when MF Global Singapore was placed in provisional liquidation, it had over 6,000 customers with complex trading positions in futures and options, foreign exchange, and bullion contracts and contracts for differences.

Aside from the creditors, more than 98% of customers who qualified to receive interim payment of their respective provisional entitlement to the collected customer segregated and proprietary funds have been paid a total of about US$294 million to date. The remaining claims include those of (i) customers who have yet to submit their payment details to the Company and (ii) claims of MF Global affiliates set aside pending reconciliation of inter-affiliate balances. The High Court of Singapore had earlier approved an interim distribution of up to US$350 million of customer segregated and proprietary funds collected by the Company.

About US$427 million of customer segregated and proprietary funds have been recovered to date, which is about 94.4% of the estimated amounts that are provisionally attributable to customers as at 30 November 2012. Some US$58 million of customer segregated and proprietary funds are still locked up with affiliates of the Company in the UK, Hong Kong, Australia, and the US.

Customers’ assets and liabilities are treated as a separate estate outside of the liquidation process of the Company. Customers’ claims for return of customer segregated and proprietary funds are proprietary in nature which have been and would continue to be dealt with separately by the Liquidators.

The Liquidators said the work of verifying and reconciling customers' positions and final entitlements continues. The process of recovery continues to be hampered by ongoing legal proceedings in other jurisdictions as well as delays in the provision of information by overseas affiliates.

The Liquidators will continue to provide regular updates to the customers and creditors on the status of the liquidation and will work diligently to recover the remaining uncollected customer segregated and proprietary funds and Company’s funds and assets.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


11 October 2012

MEDIA RELEASE

CREDITORS OF MF GLOBAL SINGAPORE TO GET FIRST INTERIM DIVIDEND SOON

  • Liquidators expect to declare an interim dividend to creditors in fourth quarter of 2012
  • 98% of qualified customers received interim payment of provisional entitlement to customer segregated and proprietary funds
  • US$427 million or 94.4% of customer segregated and proprietary funds collected
  • Balance of customer segregated and proprietary funds to be recovered depends on overseas affiliates and legal proceedings

SINGAPORE, 11 October 2012 - The Liquidators of MF Global Singapore Pte. Limited (In Creditors’ Voluntary Liquidation) (the “Company”) have announced that it intends to declare the first interim dividend to creditors in the fourth quarter of 2012.

The Liquidators, Messrs Chay Fook Yuen, Bob Yap Cheng Ghee, and Tay Puay Cheng, said they have already contacted creditors who have not submitted their proof of claims to do so. The claims will be adjudicated and creditors will be informed of the result in due course.

In their statement, the Liquidators also announced that more than 98% of customers who qualified to receive interim payment of their respective provisional entitlement to the collected customer segregated and proprietary funds, have been paid a total of approximately US$294 million. The remaining claims include those of (i) customers who have yet to submit their payment details to the Company and (ii) claims of MF Global affiliates set aside pending reconciliation of inter-affiliate balances. The High Court of Singapore had earlier approved an interim distribution of up to US$350 million of customer segregated and proprietary funds collected by the Company.

The Company went under on 1 November 2011 after its ultimate parent, MF Global Holdings Ltd., filed for Chapter 11 bankruptcy in the United States of America. The Singapore affiliate had over 6,000 customers with complex trading positions in futures and options, foreign exchange, bullion and contracts for differences. The Chapter 11 filing triggered a series of insolvencies of MF Global affiliates around the world, leading to force-closures of customers’ trading positions, as well as restricted transfers of positions and margins.

The KPMG partners were appointed provisional liquidators on 1 November 2011, and confirmed as liquidators on 28 May 2012. In the last 11 months, they have taken and continue to take all necessary actions, locally and overseas, to recover customer segregated and proprietary funds, as well as house funds, from local and overseas financial institutions, counterparties, clearing members and clearing houses.

The Liquidators have also kept customers and creditors abreast of the progress in recovering customer segregated and proprietary funds and the liquidation process.

About US$427 million of customer segregated and proprietary funds have been recovered to date. This figure represents about 94.4% of the estimated amounts that are provisionally attributable to customers as at 31 August 2012.

Some US$58 million of customer segregated and proprietary funds remain locked up with affiliates of the Company in the UK, Hong Kong, Australia, and the US. The process of recovery of the remaining customer segregated and proprietary funds continues to be hampered by ongoing legal proceedings in other jurisdictions and delays in obtaining information from overseas affiliates.

One of the joint and several Liquidators, Mr Bob Yap said: "We are pleased that despite the complexity involved in liquidating the Company, we anticipate to be able to declare the first interim dividend to creditors in the fourth quarter of 2012.

At the same time, we have managed to pay almost every customer who qualifies for the first interim payment of customer segregated and proprietary funds. Customers and creditors of the Company can rest assured that my team and I will continue to work tirelessly to recover all the funds that are recoverable.”

The Liquidators from KPMG also gave an update on the status of the remaining customer segregated and proprietary funds to be collected:

  • In Australia where MF Global Singapore’s client monies were stuck with MF Global Australia Limited (In Liquidation) (“MF Global Australia”), the Supreme Court of New South Wales released its judgment on 29 August 2012 in respect of an application by MF Global Australia’s liquidators for directions on the treatment of client monies, and held that (a) all client monies are to be pooled across each product line (i.e. CFDs and Futures respectively); and (b) for purposes of ascertaining a customer’s entitlement on a pari passu basis as required under Australia’s laws, a client’s entitlement should be calculated based on the Gross Liquidation Value (“GLV”) using mark-to-market prices as at 31 October 2011 (being the last trading day before the appointment of administrators to MF Global Australia on 1 November 2011), instead of using actual close-out prices. A copy of the Judgment is available on MF Global Australia’s website at http://www.deloitte.com/au/mfglobal.The Liquidators have recently received the Notice of GLV from MF Global Australia and are presently verifying the information provided.
  • In the UK, the special administrators of MF Global UK Limited (In Special Administration) (“MF Global UK”) have started legal proceedings in the UK to determine the appropriate valuation date for clients’ claims against MF Global UK where clients held open positions as at 31 October 2011. This is so that a client’s entitlement, on a pari passu and pooled basis as required under UK’s laws, can be ascertained. The matter is scheduled for hearing from 29 to 31 October 2012.
  • In Hong Kong, MF Global Hong Kong Limited (In Liquidation) (“MF Global Hong Kong”) has informed the Liquidators that the Company did not qualify to receive the initial interim payment under MF Global Hong Kong’s interim distribution of customer segregated funds.
  • In the US, the Liquidators have received Letters of Determination from MF Global Inc informing that subject to certain conditions and approvals, the Company’s claims against MF Global Inc for customer segregated and proprietary funds, will be allowed in full. The Liquidators of the Company are awaiting supplementary information and supporting documentary evidence pursuant to the Letters of Determination, and further information relating to the distribution of customer segregated and proprietary funds from MF Global Inc.

The Liquidators said the work of verifying and reconciling customers' positions and final entitlements continues. However, delays in receipt of the relevant information from the Company’s affiliates have protracted this process.

For example, the Liquidators are still awaiting the receipt of final GLV information from MF Global Australia pursuant to the decision made in the Australian legal proceedings; the final transfer and close-out information from its UK affiliate remains outstanding pending Court determination; and supplementary information and supporting documentary evidence from MF Global Inc remains to be provided to the Company.

The information set out in the interim and provisional statements of account issued to customers for purposes of the interim distribution of customer segregated and proprietary funds is subject to final verification and reconciliation. The Liquidators said customers would be issued with the final statements of account upon the completion of the verification and reconciliation of all their accounts and positions.

The Liquidators will continue to provide regular updates to the customers and creditors on the status of the liquidation and will work diligently to recover the remaining uncollected customer segregated and proprietary funds and Company’s funds and assets.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


23 August 2012

FILING OF REPORT WITH MF GLOBAL SINGAPORE PTE. LIMITED (IN CREDITORS’ VOLUNTARY LIQUIDATION)

Pursuant to section 81H of the Securities and Futures Act (Cap. 289) (the "SFA"), Singapore Exchange Derivatives Clearing Limited ("SGX-DC") filed a report on 23 August 2012 in respect of MF Global Singapore Pte. Ltd (“MFGS”) (the "Report") to Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng, in their capacities as joint and several Liquidators of MFGS*. The Report can be accessed via the link below:-

SGX Report

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)

* SGX-DC has published a similar announcement and this is available on SGX’s website under "Regulatory Announcement".


31 May 2012

MF GLOBAL SINGAPORE PTE. LIMITED (IN CREDITORS’ VOLUNTARY LIQUIDATION) (THE "COMPANY")

On 28 May 2012, the sole shareholder of the Company passed a special resolution for the voluntary winding up of the Company and appointed Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng, all care of KPMG Services Pte. Ltd., as joint and several Liquidators of the Company (the "Liquidators") at such remuneration based on time costs, with such remuneration of the Liquidators be subject to the approval of the appointed committee of inspection or taxation by Court, if necessary.

On the same day, in accordance with section 296 of the Companies Act (Chapter 50), the Company convened a meeting of creditors (the "Creditors' Meeting").

At the Creditors' Meeting, certain creditors tabled a resolution for the adjournment of the meeting for a period of two weeks. This resolution was not carried.

The Creditors' Meeting continued, and the following resolutions were carried at the Creditors' Meeting:-

  • Confirmation of the above appointment of Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng as Liquidators of the Company;
  • Appointment of a Committee of Inspection of not more than 5 members;
  • That the bank accounts necessary for the orderly winding up of the Company be opened with bank(s) by the Liquidators and/or the bank accounts as may have already been opened by the Provisional Liquidators of the Company be maintained by the Liquidators; and
  • Appointment of solicitors and/or any agent or person to assist the Liquidators in carrying out their duties in the winding up of the Company.

As regards the constitution of the Committee of Inspection, the following persons were voted in by creditors at the Creditors' Meeting, and are appointed to act as members of the Committee of Inspection:-

  • Mr Mark Chadwick;
  • Mr Michael Pink;
  • Mr Vinod Bansal;
  • Ms Tan Siang Hwee; and
  • Mr Peter Lewis.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(In Creditors’ Voluntary Liquidation)


28 May 2012

MF GLOBAL SINGAPORE CREDITORS MAY GET AS MUCH AS 91% OF MONEY BACK

  • Most customers may get up to 97% of money depending on products traded
  • No evidence so far of improper use of customer money in Singapore
  • KPMG partners confirmed as Liquidators

Creditors of MF Global Singapore Pte. Limited (Liquidators Appointed) may get as much as 91% of their money back and most customers up to 97% depending on products traded. Liquidators at KPMG Services Pte. Ltd. said at a creditors meeting today.

These estimates are based on an optimistic scenario where money owing from MF Global affiliates overseas and money restricted overseas can be recovered; the actual payout to individual creditors and customers may vary.

In a pessimistic scenario where it is assumed the funds overseas cannot be returned, creditors may only get 61 cents to the dollar, and most customers up to 93 cents to the dollar.

Customers who are entitled to be paid out of the customer funds collected by the Provisional Liquidators, have since February been paid up to 90% of their entitlements. To date, this is the highest payout among all MF Global affiliates that are in administration or liquidation. As of today, around 2,900 customers have received interim distribution totaling about US$266 million.

At the creditors meeting held at the Orchid Country Club, three KPMG partners – Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng – were confirmed as the joint and several Liquidators of MF Global Singapore.

They were appointed Provisional Liquidators on 1 November 2011, the day after MF Global Holdings Ltd filed for Chapter 11 in one of the largest bankruptcies in America. On the same day of the Chapter 11 filing, regulators directed MF Global Singapore to stop entering into new transactions except for reducing and closing trading positions.

Overall, a total of US$483.9 million was recovered as at 31 March 2012, of which US$427.4 million are customer segregated funds and US$56.5 million are company funds. Customer funds with overseas affiliates of MF Global Singapore totaling more than US$50 million remain to be collected. Customer segregated funds are held in trust and protected by law and cannot be used to pay off the Company’s debts while company funds are available for distribution to creditors and shareholders.

The progress in recovering customer funds was hampered by outstanding trade information from counterparties, correspondent brokers and clearing members. For example, affiliates of MF Global Singapore which are in various stages of insolvency, were unable to readily respond with outstanding trade information.

Liquidator Mr Bob Yap said “In the last seven months, we have worked round the clock to recover as much money as quickly as possible for the customers and creditors of MF Global Singapore. This is one of the biggest and most complex bankruptcies in Singapore because of the number of customers involved and the multi-jurisdictional nature of the business.

“The process of sorting out customers from creditors and customers’ entitlements was complex and laborious. But we are pleased that we’ve recovered much of what can be recovered and customers are getting most of their money back. Now that our appointment has been confirmed by the creditors, we look forward to maximising their returns as we continue to carry out an orderly winding up of the company’s affairs.”

The Liquidators said in their forensic examination of the company’s affairs conducted thus far, they have found no evidence of missing customer segregated funds or money being used improperly.

MF Global Singapore had over 6,000 customers with complex trading positions in futures and options, foreign exchange and bullion and contracts for differences. The Chapter 11 filing of MF Global Inc had triggered a series of insolvencies which led to force-closures of customers’ trading positions, and as well as restricted transfers of positions and margins. To date, the Liquidators have not received complete close out prices from relevant counterparties; where close out prices have been received, the Liquidators are in the process of verifying and reconciling such prices.

Employees of the company were paid up to the statutory cap on preferential payments for salaries of S$7,500 or five months salary (whichever is the lower). They have submitted claims amounting to S$6.6 million for salaries, bonuses and expenses. A total of 145 out of 165 staff in Singapore were terminated from employment on 30 November 2011, the rest put on short-term contracts till February 2012, while seven are currently retained to assist the Liquidators in the winding down of the company.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Liquidators Appointed)


18 May 2012

UPDATE ON THE MEETING OF CREDITORS OF THE COMPANY

As announced in the Company's Press Release at 8 May 2012 and as advertised in the Business Times on the same day, a meeting of creditors of the Company (“Creditors’ Meeting”), pursuant to sections 296 and 297 of the Companies Act (Cap. 50), will be convened at 2.30 pm. on Monday, 28 May 2012 at Orchid Country Club, Grand Ballroom, 1 Orchid Club Road, Singapore 769162.

Notification of the Creditors’ Meeting and the details thereof have been despatched to the creditors of the Company by post, a copy of which can also be found on the Company’s website.

The Creditors’ Meeting will be convened for the purposes of:-

- receiving a statement of the Company’s affairs together with a list of creditors and estimated amounts of their claims;

- confirming the appointment of Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng all care of KPMG Services Pte. Ltd., 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581, as the joint and several Liquidators of the Company pursuant to Section 297(1) of the Companies Act (Cap.50) for the purposes of winding up the affairs and distributing the assets of the Company at such remuneration based on time costs (the “Liquidators”);

- appointing a Committee of Inspection of not more than 5 members, if necessary;

- resolving that the bank accounts necessary for the orderly winding up of the Company be opened with bank(s) by the Liquidators and/or the bank accounts as may have already been opened by the Provisional Liquidators of the Company be maintained by the Liquidators for purposes of the orderly winding up of the Company;

- appointing a solicitor and/or any agent or person to assist the Liquidators in carrying out their duties in the winding up of the Company; and

- any other business.

The Provisional Liquidators and the Directors of the Company will be present at the Creditors’ Meeting. At this Creditors’ Meeting, relevant information relating to the financial position of the Company and its inability to continue business as at 1 November 2011, the affairs of the Company, the progress of the winding up of the Company, the work carried out by the Provisional Liquidators, and the costs and expenses incurred thus far in the winding up of the Company, will be presented by the Provisional Liquidators and/or the Directors of the Company at the Creditors’ Meeting. This is in line with the directions of the Singapore High Court on 11 May 2012.

The creditors will also be given an opportunity to raise any legitimate query they may have regarding the above at the Creditors’ Meeting.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)


11 May 2012

HIGH COURT ADJOURNS INDEFINITELY APPLICATION BY FORMER EMPLOYEES TO OBTAIN DOCUMENTS FROM PROVISIONAL LIQUIDATORS

The High Court of Singapore today adjourned indefinitely an application by seven former senior employees of MF Global Singapore Pte. Limited (Provisional Liquidators Appointed) to inspect certain documents and books related to the Company.

The Court did not make the Orders sought by the former senior employees with the issue of costs reserved.

The former senior employees had asserted claims for salaries, bonuses and expenses against MF Global Singapore amounting to about S$3.65 million. They had sought orders from the High Court to personally inspect various documents such as resolutions, declarations, filings, financials and books of the Company.

In their application to the High Court, the former senior employees had asserted that MF Global Singapore was solvent at the time they were still in the Company. The Provisional Liquidators noted that the directors of MF Global Singapore had declared under oath that the Company was unable to continue its business by reason of its liabilities.

The Provisional Liquidators – Messrs Chay Fook Yuen, Bob Yap Cheng Ghee, and Tay Puay Cheng from KPMG Services Pte. Ltd. – had already earlier provided some of the documents sought where they were public records and where such documents did not require a prior order from the Court.

Other documents were not released to the former senior employees as the Provisional Liquidators considered that they needed prior court approval to do so.

Moreover, the Provisional Liquidators will be presenting a statement of affairs that will disclose the financial position of MF Global Singapore at a creditors’ meeting scheduled on 28 May 2012. The meeting will also seek creditors’ approval to confirm the appointment of the liquidators and to form a committee of inspection as required in law for the proper and orderly liquidation of the Company.

Upon hearing parties, the High Court did not make the Orders sought at this stage in the light of the upcoming creditors’ meeting on 28 May 2012, and considered that any concern which these former senior employees may properly be dealt with at such meeting. To facilitate MF Global Singapore addressing the former senior employees’ concerns at the above meeting, the Court directed them to submit any query which they may have relating to the financial position of the Company 3 days before the creditors’ meeting on 28 May 2012. To facilitate such queries being raised, the Court also directed that the statement of affairs which is to be presented at the creditors’ meeting and related financial statements be provided to these former senior employees 5 days before such meeting.

Mr Yap, the joint and several Provisional Liquidator of MF Global Singapore, said:

“We are pleased with the outcome. We consider the Court’s direction to be consistent with our intention to act in the best interest of all stakeholders including creditors. At no stage were we attempting to frustrate any group of creditors. We are committed to ensure that the liquidation of MF Global Singapore continues to be carried out in an orderly manner for the benefit of all stakeholders.”

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)


08 May 2012

UPDATE ON THE MEETING OF THE CREDITORS OF THE COMPANY

Further to the press release on 24 April 2012, and as advertised in the Business Times on 8 May 2012, the meeting of the creditors of the Company, pursuant to sections 296 and 297 of the Companies Act (Cap. 50), will be convened at 2.30 p.m. on Monday, 28 May 2012 at Orchid Country Club, Grand Ballroom, 1 Orchid Club Road, Singapore 769162 (the "Creditors' Meeting").

The Company's creditors and customers who have submitted Proofs of Debt and who are entitled to attend and vote at the Creditors' Meeting will be notified, with further details of the above Creditors' Meeting.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)


24 April 2012

UPDATE ON THE INTERIM DISTRIBUTION OF CUSTOMERS' SEGREGATED AND PROPRIETARY FUNDS AND THE MEETING OF THE CREDITORS OF THE COMPANY

Bob Yap, Head of Transactions and Restructuring at KPMG Singapore, and one of the Joint and Several Provisional Liquidators of MF Global Singapore Pte. Limited (Provisional Liquidators Appointed) (the "Company") said:

“We are pleased to announce that, pursuant to the Court’s sanction of the interim distribution of up to US$350 million of the collected segregated and proprietary funds of customers of the Company, we have effected payment to more than 90% of entitled customers of the Company (who have provided payment details). Payment to the remaining entitled customers of the Company will continue in the course of the next few weeks. Efforts will continue to be made towards the completion of the verification and reconciliation of customers’ accounts and collection of remaining customers’ funds which have yet to be collected.”


Interim Distribution to Customers

Further to the press release of 27 February 2012, the Provisional Liquidators are pleased to announce that, pursuant to the Court’s sanction of the interim distribution of up to US$350 million of collected segregated and proprietary funds of customers of the Company, they have effected payment to more than 90% of entitled customers of the Company (being customers identified by the Provisional Liquidators as having proprietary interests in the total segregated and proprietary funds of customers collected by the Provisional Liquidators and whose payment details have been provided to the Company). Payment to such remaining entitled customers of the Company will continue in the course of the next few weeks.

The Provisional Liquidators have ascertained the identities of customers entitled to interim distribution, and their respective provisional entitlements, based on such customers’ legitimate proprietary interests in the collected segregated and proprietary funds, and the guiding principles for such distribution as sanctioned by the High Court of Singapore on 8 February 2012. Customers who have not yet been identified at this juncture as customers entitled to any interim distribution are not prejudiced in respect of any right or entitlement which they may legitimately have to such funds.

The Provisional Liquidators invite customers of the Company who have yet to submit the requisite ‘Payment Details Form’ to do so by registered mail or courier to:-

MF Global Singapore Pte. Limited (Provisional Liquidators Appointed)
Payment Details Form
c/o KPMG Services Pte. Ltd.
16 Raffles Quay #22-00 Hong Leong Building
Singapore 048581

Customers who do not have a copy of the above form may make a request for the same by email to sg-mfglobal@kpmg.com.sg, with the subject header ‘Payment Details Form’.

The Provisional Liquidators will continue to work towards completing the verification and reconciliation of customers’ accounts and the books and records of the Company, as well as collecting the remaining customers’ segregated and proprietary funds held by the Company’s affiliates and overseas financial institutions. The Provisional Liquidators will update customers as to the progress in this regard at the appropriate stage.

Meeting of Creditors

On 1 November 2011, the Provisional Liquidators were appointed to oversee the winding down of the business and affairs of the Company and to safeguard the interests of the Company’s creditors and customers. The appointment of the Provisional Liquidators has since been extended to 1 June 2012, with the consent of the Official Receiver.

In anticipation of a meeting of creditors of the Company to be convened, creditors of the Company, as known to the Provisional Liquidators based on the books and records of the Company, have been invited to complete and submit Proofs of Debt in respect of any unsecured debt which may be due and owing to them. The above meeting of creditors of the Company will be convened prior to 1 June 2012, details of which will be notified to the Company’s creditors in due course.

Creditors who have yet to receive a copy of the above form may make a request for the same by email to sg-mfglobal@kpmg.com.sg, with the subject header ‘Proof of Debt Form’.

Further updates and Answers to General Frequently Asked Questions relating to the Creditors’ Meeting of MFGS (including general guidelines as to who may be a “creditor” of MFGS) will be provided on the Company’s website at www.mfglobal.com.sg.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)


19 March 2012

CHANGE IN INVESTOR TELEPHONE HOTLINE NUMBER

The Provisional Liquidators would like to inform all customers that the Investor Telephone Hotline Number has been changed to (65) 8118 9932,with immediate effect. If you have any query or require any clarification, please call the Investor Telephone Hotline Number or send your query to sg-mfglobal@kpmg.com.sg

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)


27 February 2012

UPDATE ON THE INTERIM DISTRIBUTION OF CUSTOMERS' SEGREGATED AND PROPRIETARY FUNDS

Further to the press release of 8 February 2012 and following upon sanction by the Court on 8 February 2012 of the interim distribution of up to US$350 million of customers' proprietary funds, the Provisional Liquidators are pleased to announce that they have, today, commenced payment to "Cash Only" customers of the Company who have been identified as being entitled to such interim distribution, i.e. customers with no open positions as at 31 October 2011. The payment to other entitled customers of the Company will commence from mid March 2012.

The Provisional Liquidators will continue to work towards completing the verification and reconciliation exercise of customers' accounts and the books and records of the Company, as well as collecting the remaining customers' segregated and proprietary funds held by the Company's overseas coutnerparties, clearing members and financial institutions. The Provisional Liquidators will update customers as to the progress in this regard at the appropriate stage.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)


8 February 2012

THE PROVISIONAL LIQUIDATORS OBTAINED COURT APPROVAL FOR THE INTERIM DISTRIBUTION OF UP TO US$350 MILLION OF CUSTOMERS’ SEGREGATED AND PROPRIETARY FUNDS

Bob Yap, Head of Transactions and Restructuring at KPMG Singapore, and one of the Joint and Several Provisional Liquidators of MF Global Singapore Pte. Limited (Provisional Liquidators Appointed) (the “Company”) said:

“We are pleased that the Court has sanctioned our proposal to make an interim distribution of up to US$350 million to customers. Since our appointment as provisional liquidators, we have been working hard towards achieving our key objective of returning as much customers’ funds as early as possible, and we are glad that the Court sanction has paved the way for this objective to be met. We expect to be able to start making interim payments in late February 2012, whilst efforts continue to be made to work towards the completion of the reconciliation of customers’ accounts and collection of the remaining customers’ funds.”


The High Court of Singapore has today sanctioned the Provisional Liquidators’ proposal to make an interim distribution of up to US$350 million to customers of the Company identified by the Provisional Liquidators as having proprietary interests in the total segregated and proprietary funds of customers of about US$405 million collected by the Provisional Liquidators to date (the “Interim Distribution”). This represents a return of up to about 86% of the total amount of segregated and proprietary funds of customers collected by the Provisional Liquidators (“Collected Funds”).

Identified customers of the Company stand to receive up to 90% of their proprietary entitlement to the Collected Funds under the Interim Distribution. The extent of each customer’s entitlement will, however, vary from customer to customer.

In the meantime, the Provisional Liquidators will continue to work towards completing the verification and reconciliation exercise of customers’ accounts and the books and records of the Company, as well as collecting the remaining customers’ segregated and proprietary funds held by the Company’s overseas counterparties, clearing members and financial institutions, in Australia, Hong Kong, Taiwan, United Kingdom, and the U.S.A.

Further updates would be provided on the Company’s website at www.mfglobal.com.sg.

Messrs Chay Fook Yuen, Bob Yap Cheng Ghee and Tay Puay Cheng
For and on behalf of
MF Global Singapore Pte. Limited
(Provisional Liquidators Appointed)

Click here to see News Release dated 8 February on court approval obtained by provisional liquidators for the interim distribution of up to US$350 million of customers' segregated and proprietary funds.
Click here to see updated FAQs for customers (11 January 2012)