Administrators for collapsed brokerage MF Global have secured a High Court ruling to return £54 million to clients next month, according to reports.
Reuters has reported that KPMG, which was appointed special administrator when MF Global collapsed in November 2011, won High Court approval for its plan to begin to returning assets, although it still faces a lengthy battle with the US trustee and is aiming to secure £1 billion worth of assets in total.
Richard Heis, the joint special administrator of MF Global UK, said: '[The] court hearing represents an important milestone in returning some £54 million of agreed client assets.'
KPMG’s dispute with the US trustee centres on whether the $639 million the trustee wants from KPMG is drawn from funds ring fenced when the broker collapsed, a claim that would mean an earlier payout for US creditors but less upfront for European clients.
A British judge said last month the case will not reach court until April next year.