KPMG Sells MF Global UK’s Shares to JP Morgan

SPECIAL ADMINISTRATORS from KPMG have sold shares held by collapsed investment business MF Global UK to JP Morgan.

Richard Fleming, Richard Heis and Mike Pink, partners at KPMG, were appointed the UK's first joint special administrators - a regime which has different objectives to a normal insolvency.

JP Morgan bought all of MF Global UK's shares (approximately 625,000) in metals trading market the London Metal Exchange.

Heis (pictured) said: "The sales process for various aspects of the MF Global UK business continues apace and we are in negotiations with several parties to this end."

"In the mean time, we have prepared a timeline for the return of client assets and client monies. This is currently being finalised and will be communicated to clients shortly."

The administrators hope to reveal debts owed to creditors and to distribute funds from less complex transactions shortly.

JP Morgan, which already has shares in the LME, is owed approximately $1.2bn (£740m) from the US parent company MF Global.

The special administration regime was created in February following the collapse of Lehman Brothers which was swamped in litigation and complex transactions, resulting in some creditors waiting years for payment.

The newly created administration entails three tasks: making a swift return of client assets; timely engagement with authorities; and to rescue the business as a going concern, or to wind it up in the best interests of the creditors. A regular administration involves the latter, but not the first two objectives.