Freeh’s report didn’t focus on the causes for the shortfall in customer funds because recovery of those funds is outside the scope of his authority, lawyers for the trustee said in the court filing.
MF Global Holdings is scheduled to seek court approval of its final plan to liquidate tomorrow, which will pave the way for the eighth-largest bankruptcy in U.S. history to wind down under court protection. The plan is supported by Freeh and will repay creditors through income from potential lawsuits.
The holding company’s Chapter 11 case is In re MF Global Holdings Ltd., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The liquidation of the broker is In re MF Global Inc., 11-bk-02790, in the same court.