Meeting with trustee today 4:30est

#PFGBest Customers

Are you a customer of PFGBest? The CCC is working with regulators and monitoring the court on behalf of PFG customers. At this stage, we are advising customers to gather their statements and prepare for a claims or account transfer process.

Stay tuned to our website for more information.


1.  Bounced checks (we understand this is being addressed in the third transfer motion).
2.  Customers had their options and futures transferred or closed out on different days-November 1 versus November 3. 
3. Options were transferred without the premium.
4.  Where positions remained open after filing date, treatment of postpetition profits?
5.  Once the customer bar date has passed, will the Trustee make rolling distributions to customers as their claims are allowed, or will further distributions await reconciliation of all claims?  Will the Trustee prioritize review of larger claims?
6.  At least one client was required to post double margin with the exchange, but his interim distribution did not reflect this.
7.  Under what circumstances does the trustee contemplate return of non-cash property (e.g., warehouse receipts, certificates)?
8.  Issues relating to tax treatment and tax reporting.

#MFGlobal Customers

Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global on a pro bono basis, and informally represents thousands more in the public domain.

Get the latest news on #MFGlboal.

About James Koutoulas 209 Articles
Co-Founder and lead attorney of the CCC, CEO of Typhon Capital Management and Typhon Securities.


  1. James,
    Thanks for the updates. Based on your postings re the Trustee meeting and Treasury liquidations I have several more fun questions:
    1. Are Treasury Notes included (as are T-Bills)?
    2. Is liquidation of Treasuries mandatory, even if you filled out a Trustee form for spec. ident. prop. return? Doesn’t this violate rule 190?
    3. If liq. mandatory, what price will they be returning? Liq. price, price as of 10/31/11 or other (pro-rated of course).
    4. Anybody want to take a stab at where a claim for a coupon payment which paid out after 10/31/11 goes on the Trustee’s bzyantine form?

    • 1. I would imagine so, but they were not discussed specifcially.
      2. I believe the process calls for automatic liquidation unless a claim was filed for specific identifiable property. You can reach out to the trustee via email and CC me to ask him not to liquidate if you want, though
      3. Value of 10/31/2011 pro rated
      4. No 😛

  2. Just wondering, in one of your tweets from your meeting with the trustee, he said to send in claim forms as soon as possible. On the conference call of earlier in the day, it was recommended that we wait a while before sending in the claim forms to see what happens with bulk transfers, etc. I am wondering what your best advice is at this point after meeting with the trustee.

    Thanks for all of your incredible work!!

  3. James, again, great work. And am happy the Trustee team seems to be coming around. They do have incredible resources (100 E&Y; 90 Deloitte; and 190 former MFG) in addition to some bright (but arrogant and totally starting from zero on Futures) attorneys.

    That is why I was puzzled on response you received to getting a “fillable” pdf:
    • “just suggested this to trustee. They are working on it but didn’t want to hold up process while coding it”

    Can only believe response came from an old line attorney with little knowledge of technology! I ran the form they published through my Adobe Acrobat 9 (Standard version) form wizard, and it created fillable fields for 80% of the fields. Had to complete the other 20% manually which took 20 minutes or so and is not very elegant since I am not a pdf expert. All that to say, one of the (young) techies (or secretaries!) on staff could probably do a professional job in a couple hours. So what is the “hold up the process” comment”?

  4. James press on the bad checks. MFGs accounting told me the cash backing the checks was at Harris and was frozen by the Trustee In reality these funds never left my segregated account even though they were ledgered out.MFG never gave me credit for a check until it was collected yet they ledgered out before they even cut the check and snailed it.

  5. Related to #4 – “Post petition liquidation” – are the positions on foreign exchanges. Talked to someone at MF Global a couple days ago, and 26 of my 31 positions on froeign exchanges have still not been cleared off MF Global books, even though it is believed all contracts were liquidated by the foreign exchanges between November 1 and 7. The MF Global person said they are still slowly trickling in, AND he was proposing to Trustee that at statement be issued when it is complete so that the customer (like me) would have a record of the net outcome. This net outcome is needed for final claims reconciliation, and, as of now, I have no way to find out this information.

  6. Thanks for the Treasury add. Still unexplained is why on 11/17/11, during a court appearance, James Kubak told Judge Glenn that the second bulk distribution would include Treasuries.

Leave a Reply