RE MF GLOBAL HONG KONG LTD

RE MF GLOBAL HONG KONG LTD

The court granted the provisional liquidators' application: it authorized a second interim distribution up to HK$400,000,000, authorized pooling of client money and pari passu interim payments, and held that the costs of MF Global Singapore's provisional liquidators for attending the 4 May 2012 hearing are to be taxed and paid out of client money prior to any final distribution and borne pari passu by qualifying clients, on the basis that the Singapore liquidators' attendance was reasonable and they subsequently withdrew their objection.

Citation
RE MF GLOBAL HONG KONG LTD
Parties
Company (subject): MF Global Hong Kong Limited; Interested Party: MF Global Singapore Pte Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 May 2012
Case Number
HCCW356/2011
Procedural Posture
Companies (winding Up) Proceedings Under Companies Ordinance (cap. 32) / Chambers Hearing on Application for Sanction to Make Interim Distribution (provisional Liquidators)
Outcome
Order granted in terms sought with pooling paragraph; costs of MF Global Singapore provisional liquidators' attendance on 4 May 2012 to be taxed and paid out of client money and borne pari passu by qualifying clients.
Legal Topics
Interim Distribution, Client Money, Proprietary Claims and Tracing, Pari Passu Distribution, Costs of Attendance
Source Language
EN
Insolvency Companies Law Trusts Civil Procedure Interim Distribution Client Money Proprietary Claims and Tracing Pari Passu Distribution +1 more

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Parties

MF Global Hong Kong Limited

Company (subject)

MF Global Singapore Pte Limited

Interested Party

Procedural Posture

Companies (winding Up) Proceedings Under Companies Ordinance (cap. 32) / Chambers Hearing on Application for Sanction to Make Interim Distribution (provisional Liquidators)

Legal Issues

  1. 1 Whether the court should sanction a second interim distribution of client money up to HK$400,000,000
  2. 2 Whether provisional liquidators may pool client money and make interim distributions on a pari passu basis
  3. 3 Whether proprietary tracing rights of certain clients (MF Singapore clients) require preservation of segregated treatment rather than pooling

Ratio Decidendi

The court granted the provisional liquidators' application: it authorized a second interim distribution up to HK$400,000,000, authorized pooling of client money and pari passu interim payments, and held that the costs of MF Global Singapore's provisional liquidators for attending the 4 May 2012 hearing are to be taxed and paid out of client money prior to any final distribution and borne pari passu by qualifying clients, on the basis that the Singapore liquidators' attendance was reasonable and they subsequently withdrew their objection.

Court Disposition

Order granted in terms sought with pooling paragraph; costs of MF Global Singapore provisional liquidators' attendance on 4 May 2012 to be taxed and paid out of client money and borne pari passu by qualifying clients.

Orders

  • Sanction granted for a second interim distribution of client monies not exceeding HK$400,000,000.
  • Provisional liquidators authorized to pool client money and make interim distribution payments on a pari passu basis.