MF Global Holdings Ltd.'s trustee amended an information document to address objections of JPMorgan Chase & Co. and other parties ahead of an April 5 hearing on a liquidation plan, Bloomberg News reported yesterday. Trustee Louis Freeh, unwinding the parent of the failed brokerage formerly headed by Jon Corzine, joined a creditor group including Citigroup Global Markets Inc. and Silver Point Capital LP and proposed to distribute as much as 34 cents on the dollar to unsecured claimholders. JPMorgan, which arranged a $1.2 billion loan for the defunct holding company, said that a change in liability for the loan might bring creditors almost 60 cents on the dollar. An exhibit to a court filing yesterday shows JPMorgan's arguments were added to the information document, which must be approved before a payment plan can be heard in court. While customers of brokerage MF Global Inc. have received almost all of their money back, Freeh had not come up with a plan to pay holding company creditors until after the group of banks and hedge funds filed a rebel plan of their own on Jan. 10. After joining them, Freeh negotiated a revised plan that cut the payout and is pressing with them for court approval of the amended information document and payment scheme.
