News & Announcements

MF Global UK Distribution Plan for Return of Client Assets Receives Historic Court Approval

The special administrators of MF Global UK Limited appeared at Court today to seek approval of the first distribution plan for the return of client assets under the special administration regime.

Martin Pascoe QC, instructed by Weil, Gotshal & Manges on behalf of the Special Administrators, led the Court through the first ever plan that will facilitate the return of client assets and provide claimants with good title to those client assets. (A goal which was unachievable in the Lehman Brothers scheme of arrangement in 2010.)

The distribution plan was unanimously approved by the creditors’ committee of MF Global UK Limited. Glen Davis QC appeared on behalf of the FSA confirming that the FSA supported the submission of the distribution plan to the Court.

The Court approved the distribution plan.

Adam Plainer, Head of London Restructuring at Weil, Gotshal & Manges, commented that "our team worked with the Special Administrators to produce a distribution plan under the new legislation that enables claimants to get good title to their client assets. This is a remarkable milestone to have reached less than nine months since the company went into special administration and fulfills Objective 1 of the regime – to ensure the return of client assets as soon as is reasonably practicable."

Martin Pascoe QC and Daniel Bayfield of South Square were instructed by Weil. The Weil team consisted of Adam Plainer, Linton Bloomberg, Kirsten Erichsen, William Needham and Lindsay Merritt.