November 2, 2011 Comments (0) Blog, Securities Fraud

Recovery of MF Global Senior Unsecured Note Investment Losses

(Last Updated On: July 17, 2015)

Are you concerned about losing your investment in an MF Global bond like the 6.250% senior unsecured notes, due in 2016, in light of the news of MF Global’s bankruptcy?  If so, The White Law Group may be able to assist you.

MF Global Holdings Ltd. announced the offering of the senior unsecured notes on August 2nd 2011 and announced the pricing the following day. The goal was to raise $325 million in capital from the bond offering.

The intended use of the bond offering proceeds, according to a MF Global press release, was “to use a portion of the net proceeds of this offering to repay a portion of its outstanding indebtedness under its $1.2 billion revolving credit facility and for general corporate purposes.”

SEC documents indicate that the sole book-running manager for the offering is Jefferies and Company, Inc. and the co-managers are BofA Merrill Lynch, BMO Capital Markets, Commerzbank, Natixis, Lebenthal & Co., LLC, Sandler O’neill + Parnters, L.P., and US Bancorp.

Based on MF Global’s bankruptcy and the stated purpose of raising the capital it appears that the company may have been aware of significant financial distress at the time of the senior unsecured note offering.

Brokerage firms have a fiduciary duty to their customers to perform due diligence on any investment prior to recommending it for sale and to ensure that the investment is appropriate.  Brokerage firms also are responsible for determining whether an investment is appropriate in light of a particular investor’s age, investment experience, and investment objective.  Given what is now known about MF Global it appears that brokerage firms that sold the MF Global 6.25% senior unsecured notes failed to perform the necessary due diligence.

If you invested in an MF Global bond like the 6.250% senior unsecured notes or another MF Global senior note, and would like to speak to a securities attorney about your ability to recover your investment, please call our Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

Related:
MF Global Bankruptcy Leads to Major Investor Concerns
Recovery of MF Global Convertible Senior Note Investment Losses

  • […] MF Global Bankruptcy Leads to Major Investor Concerns Recovery of MF Global Senior Unsecured Note Investment Losses Filed under: Securities Fraud Comment (0) Article tags: 1.875% convertible senior note, 3.375% […]

  • Leave a Reply

    Your email address will not be published.

    -->