NEW YORK (AP) -- The trustee overseeing the bankruptcy of MF Global says its customers are going to get paid back 100% of what they are owed by the boutique brokerage.
MF Global, which was led by former New Jersey Gov. Jon Corzine, collapsed in 2011 after a disastrous bet on European countries' debt. When it fell, customer money was discovered to be missing and was later found to have been used to support the firm's trading operations.
James Giddens, the court-appointed trustee for MF Global's bankruptcy, announced the payment decision Thursday.
With this distribution, $6.7 billion in total will have been returned to more than 26,000 securities customers and commodities futures customers.
Distributions will start on Friday and continue for several weeks. According to a statement, "the distribution is possible because of a number of innovative steps, including a temporary loan of general estate property and an assignment and subrogation of rights approved by the [Court] ... As a result of earlier agreements also approved by the Court, it is anticipated that additional funds will be received from MF Global UK, Ltd. ... "
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