Unsecured creditors of MF Global Holdings Ltd on Thursday proposed a liquidation plan that could pay the brokerage's former customers in full, Reuters reported yesterday. The ad hoc group, led by distressed debt investors Silver Point Capital, Knighthead Capital and Cyrus Capital Partners, filed the proposal in bankruptcy court saying that former traders who held accounts at the commodities broker could receive full payback, while some unsecured bondholders of the MF parent could recover as much as 42 percent of their claims. MF Global declared bankruptcy in October 2011 after its exposure to risky European sovereign debt spooked investors. The proposed liquidation plan comes weeks after the MF parent and two key affiliates settled billions of dollars in intercompany claims, providing a clearer picture of what each unit will have at its disposal to pay back creditors.
