Ending days of uncertainty, troubled securities company MF Global Holdings today filed for bankruptcy protection, making it the first major American entity to be shattered by the European debt turmoil.
MF Global Holdings and MF Global Finance USA have filed for bankruptcy under Chapter 11 — that allows reorganisation of its businesses.
The group has presence in India through various entities including MF Global — Sify Securities India Pvt Ltd and MF Global Commodities (I) Pvt Ltd, according to its website.
MF Global’s fall into bankruptcy was widely speculated after the company posted over $191 million quarterly loss last week. With its huge exposure to European markets, there were also concerns about the firm’s creditworthiness amid downgrades by various rating agencies.
As per the court document, MF Global has assets of $100 to 500 million while the liabilities were worth around $10 to 50 million.
MF Global’s largest creditor is JPMorgan Chase Bank, with claims to the tune of $1.2 billion, the filing with the US Bankruptcy Court in the Southern District of New York said.
Going by reports, the company has been bogged down mainly by huge bets on European sovereign debt and was exploring various options including potential suitors.
The entity, run by former Goldman Sachs executive Mr Jon Corzine, is a leading broker of commodities and listed derivatives.
According to its website, MF Global provides access to more than 70 exchanges worldwide.