MF Global files for bankruptcy protection

MF Global’s bankruptcy has been widely speculated after the company posted a quarterly loss of over $ 191 million last week. Given the enormous exposure to the European markets, there were also concerns about the company’s creditworthiness in view of the downgrades by various rating agencies

New York: After days of uncertainty, troubled securities firm MF Global Holdings filed for bankruptcy protection on Monday, making it the first major American company to be shaken by the European debt turmoil, reports PTI.

MF Global Holdings and MF Global Finance USA have filed for Chapter 11 bankruptcy, allowing their businesses to be reorganized.

According to its website, the group is present in India through various entities such as MF Global – Sify Securities India Pvt Ltd and MF Global Commodities (I) Pvt Ltd.

MF Global’s bankruptcy has been widely speculated after the company posted a quarterly loss of over $ 191 million last week. Given its enormous exposure to European markets, there were also concerns about the company’s creditworthiness given its downgrades by various rating agencies.

According to the court document, MF Global had assets of $ 100 million to $ 500 million, while liabilities were valued at around $ 10 million to $ 50 million.

MF Global’s largest creditor is JPMorgan Chase Bank with claims totaling $ 1.2 billion, according to its filing with the US bankruptcy court in the southern borough of New York.

The company was reportedly blocked mainly by huge bets on European government bonds and was considering various options, including potential applicants.

The company, led by former Goldman Sachs executive Jon Corzine, is a leading broker in commodities and listed derivatives.

According to its website, MF Global provides access to more than 70 exchanges around the world.

Comments are closed.