Strategies for Dealing with Clawbacks Threatened by MF Global Trustee

#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.

THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. Although the information below is presented in good faith and believed to be correct, it is general in nature and is not intended as legal advice. The information below may not be applicable to or suitable for an individual’s specific circumstances and may require consideration of other matters.  We recommend that you consult a lawyer to ensure that our information and your interpretation of it is appropriate for your particular situation. 

Many creditors who received payments from MF Global within 90 days of its bankruptcy filing are receiving letters from the Trustee requesting that they contact the Trustee's legal counsel this month to discuss those payments and potentially return all or some of them to the Trustee.  This is commonly known as a 'preference attack', an action in which a Trustee of an insolvent company attempts to recover preferential transfers (i.e. payments) from current and former creditors.  It is very important that you respond to this letter after discussing it with your legal counsel and mount a defense that the payments you or your company received are not voidable by the Trustee.

As an Introducing Broker, you may have a defense to this action:


 

The remainder of this article is for
CCC Subscribers ONLY.  Not a subscriber?
JOIN NOW!
or
LOGIN


#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 John Roe 91 Articles
Co-Founder of the CCC and head of BTR Trading and Roe Capital Management.

Be the first to comment

Leave a Reply