The trustee for the liquidation of MF Global Inc. is seeking permission from the bankruptcy judge overseeing the firm’s dissolution to make a distribution of US $461 million to unsecured general creditors. If approved, this distribution would result in total distributions to unsecured general creditors of 72 percent of their approved claims. To date, the trustee has distributed 100 percent of approved claims of MF Global’s customers (totaling US $6.7 billion), and 100 percent of approved secured, priority and administrative claims. Separately, the trustee for the liquidation of Lehman Brothers Inc. is in the process of making a second distribution to unsecured creditors of the firm. This distribution—US $2 billion—increases the total distribution to unsecured creditors to $5.9 billion, or 27 percent of their approved claims. Customers of Lehman Brothers in the US had previously received more than US $106 billion—100 percent of their claims. The trustee for both MF Global and Lehman Brothers is James Giddens.
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