MF Global Holdings cash collateral access extended two days to Nov. 16

By Caroline Salls

Pittsburgh, Nov. 10 - MF Global Holdings Ltd.'s cash collateral use was extended to Nov. 16 from Nov. 14, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

JPMorgan Chase Bank, NA agreed to the extension.

As previously reported, pre-bankruptcy liquidity facility lender agent JPMorgan asked the court to put restrictions on the cash collateral use in light of uncertainties surrounding MF Global's bankruptcy case.

Under the Nov. 2 interim order, the court ruled that the cash collateral can only be used to fund necessary expenditures that would "avoid irreparable injury to the debtors" and to pay specified post-bankruptcy obligations.

In addition, the funds cannot be used for MF Global Inc., for any foreign non-debtor entities without JPMorgan's consent or for any other non-debtor entity, unless MF Global determines the funding is needed to avoid harm to its estates.

Unencumbered cash must also be used before any cash collateral, the order said.

MF Global, a commodity and derivatives broker based in New York, filed for bankruptcy on Oct. 31. Its Chapter 11 case number is 11-15059.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.