MF GLOBAL EXECS CAN ACCESS D&O INSURANCE PROTECTION

Judge Martin Glenn of the US Bankruptcy Court in Manhattan has ordered the release of up to $30m in insurance funds to help pay for the defence of executives in bankrupt stockbroker MF Global. The judge rejected an application by three plaintiffs that the release of the funds be put on hold while they appealed Judge Glenn's April 10 decision that the funds be made available (IIN 24, April 11 2012). The judge wrote that existing case law "establishes that the individual insureds cannot be denied contractually provided insurance protection when their employers are insolvent because others may have claims on the insurance policies". More than 20 actions by MF Global shareholders and customers have been consolidated into a single case in a Manhattan federal court. Some $1.6bn of customer money is missing, according to calculations by the MF Global Inc brokerage unit trustee.