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MF Global, J.P. Morgan in Deal on Chapter 11 Case

MF Global, J.P. Morgan in Deal on Chapter 11 Case

MF Global Holdings Ltd. (MFGLQ) bankruptcy trustee Louis Freeh struck a deal with J.P. Morgan Chase & Co. (JPM) in their dispute over more than $900 million in intercompany claims, removing one of the key roadblocks to the holding company’s Chapter 11 liquidation plan.

Under the settlement, some $275 million of the more than $1.8 billion that MF Global’s holding company says a c

ompany finance subsidiary owes it will be subordinated, that is ranked below the $1.2 billion owed to a lending group led by J.P. Morgan.

“The settlement is in the best interest of creditors (as) it removes a major hurdle to confirmation of the plan,” said Mr. Freeh in a statement Tuesday.

Read more: http://www.foxbusiness.com/news/2013/03/06/mf-global-jp-morgan-in-deal-on-chapter-11-case/#ixzz2MoKpSTjk

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