Unsecured creditors of MF Global Holdings' failed brokerage unit may soon receive $461 million in repayment, raising recoveries to 72 percent of claims lodged when it collapsed in 2011, the firm's trustee said yesterday, according to Reuters. Trustee James Giddens filed court papers seeking a bankruptcy judge's approval for the payout. Unsecured creditors received an initial $519 million distribution last year. Customers of the broker-dealer and other classes of creditors have received full payback of about $6.7 billion. MF Global Holdings, a commodities broker run by former Goldman Sachs co-chairman and New Jersey governor Jon Corzine, collapsed amid worries about Corzine's $6.3 billion bet on European sovereign debt, and the use of customer money to cover liquidity shortfalls. Its U.S. broker-dealer unit, MF Global Inc., also wound up in bankruptcy court, where Giddens was appointed to liquidate its estate and pay back customers and creditors.
