Former customers of Jon Corzine's collapsed brokerage MF Global would recover most, and probably all, of their money under the latest projections by the trustee liquidating its bankrupt parent company, Reuters reported yesterday. In a court filing late on Friday, trustee Louis Freeh outlined an amended version of a plan for how to divvy up MF Global's assets and distribute them among various creditor classes. Freeh projected MF Global's U.S. broker-dealer unit could have up to a $120 million surplus, which would mean full payback for the traders whose money was frozen when the brokerage went bankrupt in October 2011. But Freeh also said the broker-dealer unit could wind up with a $6 million shortfall. While that is a small number in the context of the $1.6 billion hole customers were thought to face at the beginning of the case, and one that could likely be bridged through other sources of recovery, it is a less certain forecast than the version of the payout plan released last month.
