MF Global UK's administrator, KPMG, said on Monday it had received no bids for the failed broker's remaining assets and the business would have to be closed. KPMG told the remaining 300 MF Global staff in London it had stopped looking for a buyer after a fruitless six weeks in which no third party had come forward.
"A marketing process was conducted for each main business area but no viable bids were received," said Mike Pink, joint administrator at KPMG. The news is a blow to staff at MF Global and marks the latest twist in a complex administrative process that has seen KPMG trying to recover assets on behalf of MF Global clients. KPMG said on Friday "all but a tiny handful" of the failed futures broker's 1.6 million British client positions had been closed or transferred.
The administrator also said in an emailed statement it had recovered about 600 million pounds ($929 million) of client monies from exchanges and clearing houses, and 200 million pounds of MF Global's cash. The administrator also reiterated that it plans a special meeting for clients and creditors on January 9 next year and that it wants to have received all client claims by the end of March. MF Global was one of the biggest futures brokerages but the firm, led by former United States Senator Jon Corzine, failed on October 31 after a bad $6.3 billion bet on European sovereign debt spooked counterparties and investors.
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