MF Trustee Freeh Says Work Is ‘Under Way’

By David McLaughlin – Nov 30, 2011 9:39 PM GMT+0000

Louis Freeh, the former director of the Federal Bureau of Investigation, said his work is “under way” as the court-appointed trustee for bankrupt MF Global Holdings Ltd. (MF), the parent of a defunct futures brokerage.

Freeh, whose job is to work with regulators and promote a quick return of funds to creditors, spoke today at a hearing in U.S. Bankruptcy Court in Manhattan, where he updated the judge presiding over the case on his progress.

“We’re under way,” he said.

Freeh told U.S. Bankruptcy Judge Martin Glenn that he has met with representatives of New York-based MF Global and understands the “urgency” of those involved in the collapse of the firm, which filed for bankruptcy on Oct. 31.

Freeh declined to comment after the hearing.

Glenn asked for a status report on the case at a future hearing, saying he reads regularly in the media about the fallout from the bankruptcy, while there is “very little said in court.” The court has been “flooded” with communications from customers of the firm, he said. Parties involved in the case are entitled to more information, the judge said.

Martin J. Bienenstock, a lawyer for the MF Global creditors committee, supported the judge’s request.

“We, too, read in the papers and see figures and facts or what may or may not be facts,” he said.

The parent’s bankruptcy case is MF Global Holdings Ltd., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

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