Payments to creditors of the U.K. arm of MF Global Holdings Ltd. scheduled for next month may be delayed because of a legal dispute over repurchase agreements between the British and American units of the failed broker, Bloomberg News reported today. Louis Freeh, the bankruptcy trustee of parent company MF Global Holdings Ltd., filed a lawsuit in London saying that U.K. administrators KPMG LLP wrongly rejected his claim for the repurchase agreements. Freeh’s rejected claim was for several hundred million dollars. The lawsuit means KPMG cannot make a distribution to creditors under U.K. insolvency rules without a court order, the firm said. An interim dividend to creditors had been scheduled for June 30.
