NIBA's legal advisor, Schuyler, Roche & Crisham (SRC) was present in court Thursday morning when US Bankruptcy Judge Glenn approved a plan submitted from the MF Global trustee to begin a distribution of approximately $520 million, or about 60% of customers cash collateral. Neal Stevens, an attorney with SRC, confirmed that the definition of "cash equivalents" includes T-bills. Mr. Stevens had earlier hand-delivered NIBA's online petition containing over 700 signatures collecting in only about 72 hours.
The transfer of funds back to customers may begin by November 24. Some groups had objected to this method of distribution saying it was "inequitable," but the trustee indicated that that there is a third transfer of funds being considered.
NIBA's online petition requested return of the customers segregated funds as quickly as possible.
