MF Global Trustee Calls for Settlement, Not Suits

Louis Freeh, the trustee for bankrupt securities firm MF Global Holdings Ltd., MFGLQ 0.00% called for settlement talks with other bankruptcy administrators in the U.S. and U.K. amid a clash over how to recover money for the company’s customers and creditors.
The proposal was made by Mr. Freeh in a court filing Wednesday afternoon that also outlined his opposition to a plan by a separate trustee, James Giddens, to join several plaintiff lawsuits against former MF Global officials.
The move by Mr. Freeh, a former director of the Federal Bureau of Investigation, comes one month after he submitted congressional testimony projecting that the various estates had enough money to pay back customers. Both steps indicate that Mr. Freeh, whose interests as parent-company trustee have sometimes diverged from lawyers trying to recover money for MF Global customers, is looking to find ways to unlock the logjam. Read Wall Street Journal report here.