Chillin' out till it needs to be funded
Two dozen top executives at MF Global including three reportedly claimed to be assets during the recovery process ( by virtue of being of help in recovering and liquidating assets) have been recommended for bonuses to be paid out from the bankruptcy proceeds. COO Bradley Abelow and Gen Counsel Laurie Ferber and CFO Henri Steencamp will be duly compensated for work done during the bankruptcy proceeds, according to one adviser while 70 employees on James Giddens team work without salary or bonuses from the MF Global team, to be reduced to 50 by the end of the month
Meanwhile in other news for the same issue, James Freeh, Trustee in charge of liquidation, is proposing Performance based bonuses, allowed under bankruptcy law to enlist their help is figuring out the labyrinth of transactions in the final days of MF Global. Freeh explicitly wrote a letter to Capitol hill denying he had decided any such bonus plan.
Meanwhile MF Global trustees have deemed to recover upto 90% of the client account monies in the redistribution account from trusty sources ( Th Big Picture, Barry Ritholtz) Early reports had suggested late recoveries would not make it to the client pool for redistribution as it had already been locked.
In another bankruptcy proceeding, Dynegy has been indicted by the court appointed examiner for fraudulent conveyance as US Bank filed suit against Carl Icahn’s holding for having cheated creditors..
Chapter 7 bankruptcies request final liquidation as assets ( except essential assets) are not enough to cover creditors’ dues and principal outstanding while Chapter 11, 12 and 13 allow bankrupt company to keep assets and pay off creditors from future income. Chapter 15 was added in 2005 to cover International companies (Foreign domicile) with US debts to manage selective bankruptcy with US creditors.
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