MF Global Holdings Ltd. chapter 11 trustee Louis Freeh was given the right by a London judge to participate in all U.K. court proceedings involving the failed brokerage, Bloomberg News reported today. Freeh has filed a London lawsuit against the administrators of the company’s U.K. unit seeking about $400 million from internal repurchase agreements used to move money around the company. Legal disputes between multiple trustees winding up MF Global's British and American entities have tied up about $1.1 billion of clients' and creditors' money, which cannot be returned until courts decide who controls the assets. MF Global filed the eighth-largest U.S. bankruptcy on Oct. 31 after getting margin calls for its bets on European debt. A separate $700 million case between U.K. administrators KPMG LLP and the trustee of the MF Global U.S. brokerage unit over disputed assets is set to go ahead in London in April.
