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MF Global Holdings Ltd. has engaged attorneys tp prepare for a possible bankruptcy filing or other restructuring if it is unable to sell all or part of its broker-dealer, The Wall Street Journal reported Sunday, citing unidentified people familiar with the matter. The financial firm has hired law firms Skadden, Arps, Slate, Meagher & Flom and Weil, Gotshal & Manges "to prepare potential restructuring options," the report said. MF Global ended with a 16.1% loss on Friday, having lost 85.7% of its value so far this year, as investors worry about the firm's exposure to Europe.
MF Global Holdings Ltd, formerly known as MF Global Inc., formerly known as Man Financial, is one of the world's largest derivatives brokers with a significant presence in OTC products and cash securities. The Bermuda-registered group was rebranded and spun off from Man Group in July 2007 through an initial public offering (IPO) which valued the company at $3.63 billion. It changed its name to MF Global Holdings Ltd in January 2010, when it moved its headquarters to Delaware.
As of 2008, MF Global was the world's largest futures retail broker, with over 138,000 active client accounts. It has grown organically and through 18 acquisitions since 1989, including its 2005 purchase of client accounts and other assets from Refco.
The company has a global footprint through offices in New York and Chicago, Bermuda, Toronto, London, Paris, Mumbai, Singapore, Sydney, Taipei, Tokyo, Hong Kong and Dubai. It operates on more than 70 exchanges, and is the largest single broker on most of the leading platforms including the CME and Eurex.
Japan intervened in the foreign-exchange market Monday, sending the U.S. dollar and the euro climbing sharply against the Japanese yen.
The dollar /quotes/zigman/4868099/sampled USDJPY +3.7035% surged against the yen, buying ¥78.42 compared to ¥75.77 in early Monday morning trade.
The euro /quotes/zigman/4868097/sampled EURJPY +3.2367% also jumped against the yen, buying ¥110.67, compared to ¥107.24 in late North American trade Friday.
The dollar hit a fresh record low against the yen earlier Monday, and Japanese Finance Minister Jun Azumi said that the country would take decisive steps to stem the currency’s rise if required, but didn’t provide specific details, according to reports from the region.
Pressure is mounting on Corzine, the former governor of New Jersey and U.S. senator, after MF Global declined 67 percent last week and its bonds started trading at distressed levels amid its disclosures of bets on European sovereign-debt.
MF Global, which has a market value of $198 million, owns $6.3 billion of Italian, Spanish, Belgian, Portuguese and Irish debt, the company said in an Oct. 25 presentation.
Oct. 28 (Bloomberg) -- Oct. 28 (Bloomberg) -- Bonds of MF Global Holdings Ltd. declined to as low as 35 cents on the dollar after the futures broker run by Jon Corzine drew on its credit lines and Moody’s Investors Service and Fitch Ratings cut the firm’s ratings to junk.
The company’s $325 million of 6.25 percent bonds, issued at par in August, fell 11.9 cents to 50 cents on the dollar as of 5:17 p.m. in New York, for a yield of 25.2 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority...
MF Global is in discussions with five potential buyers for all or parts of the company, according to a person with knowledge of the matter. Banks, private-equity firms and brokers are examining the firm’s books, said the person, who asked not to be identified because the talks are private.
MF Global Holdings Ltd. was nearing a deal late Sunday to sell off assets to Interactive Brokers Group and file for bankruptcy protection as soon as Monday, The Wall Street Journal reported, citing an unnamed person familiar with the matter. The tentative deal would involve a Chapter 11 filing followed by Interactive Brokers making an initial bid of about $1 billion via a court-supervised auction, the report said. It said that both companies' boards of directors have approved the plan, hammered out by MF Global Chief Executive Jon Corzine, who previously served as governor of New Jersey and chief of Goldman Sachs Group Inc.
A risky management style and a series of bad bets have brought MF Global, the financial derivatives broker led by former New Jersey Senator and Goldman Sachs CEO Jon Corzine, to the brink of collapse. On Monday morning, the New York Fed blocked MF Global from doing business with the central bank as the firm looks for a buyer in a deal that will likely entail bankruptcy and the end of Corzine's tenure at the firm, report The Wall Street Journal and Financial Times. It's a bitter fall from grace for Corzine, who returned to Wall Street after losing the New Jersey governorship to Chris Christie in 2009 following a corruption scandal. Here's how his plan to turn MF Global into a "mini Goldman" ended up bringing the company down: