MF Global and its creditors have resolved a dispute with JPMorgan Chase & Co. over the value of intercompany claims within the bankrupt brokerage's estate, eliminating what could have been a sticking point in MF Global's creditor repayment plan, Reuters reported yesterday. The effect of the settlement, a result of court-ordered mediation, is essentially to enhance JPMorgan's recovery, according to a statement yesterday by Louis Freeh, the trustee liquidating the broker's estate. Under the deal, MF's parent entity will subordinate $275 million of its $1.887 billion claim against MF Global's finance unit below JPMorgan's $1.2 billion claim against the estate.
