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MF Global Hires Two Bankruptcy Legal Advisors As Chapter 11 Looms

Tyler Durden's picture





 

The deadline to submit a bankruptcy filing to the Southern District of New York is around midnight, which probably explains why even as MF Global is proceeding at a feverish pace to sell parts or all of it to what appear increasingly skittish investors (who, like China will likely wait until the stalking horse auction to show their bids), it has, as the WSJ has just reported, hired bankruptcy and restructuring lawyers in the face of Weil Gotshal, best known for collecting hundreds of millions in hourly legal fees for its work on the Lehman bankruptcy case, as well as Skadden Arps. It appears that the sale process has not gone quite as well as hoped for, and now the company is bracing for the worst with just under 6 hours left to iron out a going concern solution.

Per the WSJ: "MF Global Holdings Ltd., the troubled securities firm, has hired bankruptcy and restructuring lawyers, said people familiar with the matter, as it races to sell all or part of its broker-dealer in an effort to survive. MF Global, whose shares have plummeted amid investor concerns over its exposure to European government debt, has hired law firms Skadden, Arps, Slate, Meagher & Flom and Weil, Gotshal & Manges to prepare potential restructuring options, the people said. A bankruptcy filing or other restructuring transaction remains an option for MF Global should it be unable to get a sale done, one of the people said." Why two restructuring legal counsels? "Skadden joins restructuring and deal bankers at Evercore Partners advising MF Global. Other Skadden lawyers that don't specialize in restructuring are also advising the investment firm. Weil, meanwhile, would represent MF Global's U.K. subsidiary should it need to pursue some kind of formal restructuring proceeding overseas, a separate person familiar with the matter said. In addition, Sullivan & Cromwell's restructuring practice has also joined the fray advising MF Global, people familiar with the matter said. Non-restructuring lawyers at Sullivan are also working on the situation." And here comes, naturally, the hedge: "The hiring of restructuring advisers doesn't mean MF Global will necessarily seek bankruptcy protection. Such advisers work on a range of transactions, including raising new debt or equity or trying to find other out-of-court solutions to a company's woes. Still, a federal bankruptcy court could provide a venue for a potential sale of MF Global's assets. MF Global has been focused on trying to find buyers without resorting to bankruptcy."

And while we, and most likely everyone else in the world, wishes Jon Corzine all the best, just in case all the best does not happen, we are confident there will be numerous reporters around the main entrance of Southern District of New York at 1 Bowling Green where the bankruptcy petition still has to be handed in physically should all else fail. Well, not all else: Corzine will have succeeded in handing over the firm he has headed for just about two years to Goldman Sachs on a bankruptcy, read 35 cents on the dollar, platter.

 


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Sun, 10/30/2011 - 18:41 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

So the odious Jon Corzine will hand off MF Global to his masters there at Goldman Sachs.  Ugh.

Sun, 10/30/2011 - 18:42 | Link to Comment WestVillageIdiot
WestVillageIdiot's picture

Too bad that ugly prick didn't die when he ordered his security detail to drive at excessively high speeds when he was trying to meet with Al Sharpton to make political hay.  Talk about a sociopathic piece of shit.  Thy name is "John Corzine". 

 

 

Sun, 10/30/2011 - 19:31 | Link to Comment Jay Gould Esq.
Jay Gould Esq.'s picture

"MF Global ? Corzine ?! Hey look, buddy -- we're still working on Bear Stearns, here. Find yourself another sucker. Try the ChiComs. They're flush with Timmy's trillions."

http://www.birdinginspain.com/images/phototrip-gt-black-griff-bi.jpg

Sun, 10/30/2011 - 19:37 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

thxz!

saved to hardDrive, JG_Esq

what's for dinner?  capitalism!

Sun, 10/30/2011 - 19:56 | Link to Comment Don Birnam
Don Birnam's picture

Bon appétit, Slewie... Capital Tartare.

Sun, 10/30/2011 - 20:16 | Link to Comment Jay Gould Esq.
Jay Gould Esq.'s picture

The other white meat.

Sun, 10/30/2011 - 20:55 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

hey guys & ghouls!

the bloomie commodities-for-idiots page now carries [slightly-delayed] quotes from the china crimex on gold and silver.  see?

Commodity Futures Online Trading - Bloomberg

from friday?  that's helpful!  i don't mind 15 minutes, but 2 daZe?

Sun, 10/30/2011 - 18:45 | Link to Comment WestVillageIdiot
WestVillageIdiot's picture

I looked at puts on MF on Friday.  I figured I would want a little time so that any bullshit rally, in the short run, wouldn't kill me.  Looking at the puts on MF I figured the only possible way to make the gamble worthwhile was if they went into bankruptcy.  Waiting for that seemed like it would be painful.  And here we are only 56 hours later.  "If only......"

Sun, 10/30/2011 - 19:02 | Link to Comment NewThor
NewThor's picture

So Corzine heads over to MFglobal.

Uses all monies to load up on Euro bonds.

Even though he's got deep GS insight into this issue.

MFglobal tanks like Ishtar

and Goldman Sachs steps into buy them

for pennies on the dollar.

They should skywrite "We use your money to find more creative ways to profit from fucking the system."

That's put the icing on this radioactive dead fish cake.

Sun, 10/30/2011 - 18:44 | Link to Comment Freddie
Freddie's picture

Corzine bankrupts NJ and then MF Global.  This POS should be in prison.  Do Chen nailed it.  This was a set up fromthe start to just fold it into Goldman.  The Mafia has more honor than GS.

Sun, 10/30/2011 - 18:48 | Link to Comment X.inf.capt
X.inf.capt's picture

alright.

ill say it...

bankrupcy......BITCHEZ

Sun, 10/30/2011 - 18:50 | Link to Comment lolmao500
lolmao500's picture

And who cares if they go tits up? Will that bring anyone else down? No? Then who the hell cares?

Sun, 10/30/2011 - 20:45 | Link to Comment trampstamp
trampstamp's picture

Have you seen 'Margin Call''? Same shit

Sun, 10/30/2011 - 21:18 | Link to Comment lolmao500
lolmao500's picture

Yes I did. Lehman had $275B in assets when they went bankrupt. MF has about $42B... not the same thing at all.

Sun, 10/30/2011 - 18:51 | Link to Comment AbelCatalyst
AbelCatalyst's picture

MF Global = Mother F$&@$ Global(ization)

In a world where there are an unlimited number of weakest links...

Sun, 10/30/2011 - 18:55 | Link to Comment Albertarocks
Albertarocks's picture

"...has hired law firms Skadden, Arps, Slate, Meagher & Flom and Weil, Gotshal & Manges to prepare potential restructuring options."

 

MF Global doesn't stand much of a chance with that law firm when Goldman has at their disposal the all-time greatest partners in crookerie, the real masters at handling bankers' affairs, the law firm of Dewie, Cheatem and Howe.   Goldie will probably get the remnants for about 12 cents on the dollar.

Sun, 10/30/2011 - 19:05 | Link to Comment Eally Ucked
Eally Ucked's picture

Actually if Weil Gotshal, Skadden Arps, Meagher & Flom and sorry (I did not put the full name at first) Weil, Gotshal & Manges are involved situation is under control, everything will stay in family. Don't worry!

Sun, 10/30/2011 - 18:54 | Link to Comment sitenine
sitenine's picture

Queue the next domino please.

Sun, 10/30/2011 - 18:53 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

once when i was working on a house in a brutal heat wave, my boss sez to me:  slewie!  see that buzzard up there?

yeah, chuck...

well, you're moving so slow, he thinks you're dead!

buzzards circling, BiCheZ!

Sun, 10/30/2011 - 20:50 | Link to Comment Miss Expectations
Miss Expectations's picture

A farmer wanted to have his hens serviced, so he went to the market looking for a rooster. He was hoping he could get a special rooster—one that would service all of his many hens. When he told this to the market vendor, the vendor replied: “I have just the rooster for you. Henry here is the horniest rooster you will ever see!”

So the farmer took Henry back to the farm. Before setting him loose in the hen house, though, he gave Henry a little pep talk: “Henry,” he said, “I'm counting on you to do your stuff.” And without a word, Henry strutted into the henhouse.

Henry was as fast as he was furious, mounting each hen like a thunderbolt. There was much squawking and many feathers flying, until Henry had finished having his way with each hen. But Henry didn't stop there.

Henry went into the barn and mounted all of the horses, one by one, and still at the same frantic pace. Then he went to the pig house, where he did the same. The farmer, watching all of this with disbelief cried out, “Stop, Henry!! You'll kill yourself!!”

But Henry continued, seeking out each farm animal in the same manner.

Well, the next morning, the farmer looked out and saw Henry lying there on his lawn. His legs were up in the air, his eyes rolled back, and his long tongue hanging out. A buzzard was already circling above Henry. The farmer walked up to Henry saying, “Oh you poor thing, look what you did, you've gone and killed yourself. I warned you little buddy.”

“Shhhhhhh,” Henry whispered, “The buzzard's getting closer.”

Sun, 10/30/2011 - 21:02 | Link to Comment vamoose1
vamoose1's picture

hahahahaha            

Sun, 10/30/2011 - 21:07 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

That was an excellent joke Miss E!  I went ahead and sent it to my Joke List and with credit to you.

Sun, 10/30/2011 - 22:04 | Link to Comment Albertarocks
Albertarocks's picture

HIS AND HER DIARY FOR THE SAME DAY:

Her Diary:

Tonight, I thought my husband was acting weird. We had made plans to meet at a nice restaurant for dinner. I was shopping with my friends all day long, so I thought he was upset at the fact that I was a bit late.  But he made no comment on it.
 
Conversation wasn't flowing.  So I suggested that we go somewhere quiet so we could talk. He agreed, but didn't say much. I asked him what was wrong.  He said: "Nothing".  I asked him if it was my fault that he was upset. He said he wasn't upset, that it had nothing to do with me and not to worry about it.

On the way home, I told him that I loved him. He smiled slightly, and kept driving. I can't explain his behavior.   I don't know why he didn't say, "I love you, too".  When we got home, I felt as if I had lost him completely, as if he wanted nothing to do with me anymore.  He just sat there quietly, and watched TV. He continued to seem distant and absent.

Finally, with silence all around us, I decided to go to bed. About 15 minutes later, he came to bed. But I still felt that he was distracted and that his thoughts were somewhere else.  He fell asleep - I cried. I don't know what to do. I'm almost sure that his thoughts are with someone else. My life is a disaster.

His Diary:

Boat wouldn't start, can't figure out why.

Sun, 10/30/2011 - 22:55 | Link to Comment Forgiven
Forgiven's picture

Blackbeard the Pirate was awakened by the loud alarm shouted from the crow's nest, "There be a British Man 'o War on horizon off the starboard bow."  Blackbeard rousted from his rack and bounded quickly to the helm.  His first mate handed him the spyglass.  Blackbeard surveyed the horizon and shouted an order to roust the crew and prepare for battle.  As his first mate blasted the order to the crew, he turned to his steward. "Fetch me my bright red coat," he ordered.  "If I should be struck in battle, I don't want the men to notice and lose heart."

As the crew began to assemble midships, he stood and gave a rousing speech to action.  As he finished, the crow's nest shouted, "There be 10 more British Man O' War now."  Blackbeard turned to his steward, "Fetch me my brown trousers lad."

Sun, 10/30/2011 - 18:59 | Link to Comment PY-129-20
PY-129-20's picture

A bit OT:

Just two days after UniCredit shares were suspended for EXCESSIVE VOLATILITY, they set a new record. They finished their building - the Torre Garibaldi - in Milano. It's now the highest building in the town (230 m). A bit ironic for an "insolvent" bank.

Like that Casino building (Cosmopolitan) in Las Vegas, owned and finished during the banking crisis by Deutsche Bank.

Sun, 10/30/2011 - 18:59 | Link to Comment Sudden Debt
Sudden Debt's picture

Why doesn't the ceo take the remaining money from the vault, step on a plane to mexico and change his name?

Sun, 10/30/2011 - 19:08 | Link to Comment Eally Ucked
Eally Ucked's picture

Mexico? Are you crazy, you don't know any better countries to run to?

Sun, 10/30/2011 - 19:39 | Link to Comment Sudden Debt
Sudden Debt's picture

Yeah... Europe...

Sun, 10/30/2011 - 19:55 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Mexico is IN Europe dumas.

Sun, 10/30/2011 - 19:18 | Link to Comment tickhound
tickhound's picture

Because former Goldman CEO's don't ever have to run. 

He has $millions from years of pillaging on behalf of Goldman, and only added to it and secured his 'reputation' as a former Senator and Governor.  They don't run either.

His name will someday again be 'celebrated,' for the above mentioned reasons.  And slightly analagous to Herman Cain, is 'presidential' material.

After a 2014 A&E Bio, and a few years of heart-warming philanthropy... Look for him to re-enter politics... Perfect resume for a Treasury Secretary.

Want to know the "type" of guy leading us into the abyss?  Corzine is a poster child candidate.

Sun, 10/30/2011 - 21:54 | Link to Comment rosethorn
rosethorn's picture

As a Goldman alum, former Senator and Governor, you don't have to be a NJ politico to know that this guy has contacts, connections, and favors to be called in all over the place.  The company gets liquidated but Corzine just moves on to the next deal.

Sun, 10/30/2011 - 22:07 | Link to Comment tickhound
tickhound's picture

However, and as punishment, he may be forced to do a stint at Harvard... As president.

Mon, 10/31/2011 - 01:03 | Link to Comment Freddie
Freddie's picture

I don't watch TV anymore and only saw a few Sopranos (shot on location in NJ).  Corzine was Goldman and they die Goldman like mobsters never leave and CIA never leave.

This was a "bust out" just like Good Fellas and the Sopranos.   Corzine gets into MF Global then "busts it out" so Goldman buys it up for pennies.  This man, like the rest of Goldman, is PURE EVIL.

Sun, 10/30/2011 - 19:02 | Link to Comment DormRoom
DormRoom's picture

oh shiat.. markets tanked after Global Alpha liquidated.   Perhaps another huge selloff, if MF liquidates.  Anyone know how leverage up they were.. the unwind may be brutal for markets.

Sun, 10/30/2011 - 19:02 | Link to Comment mrdenis
mrdenis's picture

This piece of garbage (Corzine)gave away New Jersey via of taxing the shit out of the burbs and sending the money to support the cities,urban gettos ,or the hood ,Corzine raped the property taxpayers I've live in this state all mt life the same house for 30 years my property taxes went from $2,200 to now over $26,000 in his 4 years alone they went from 14K to over 22K ....being roasted on a spit would be just punishment ...http://www.youtube.com/watch?v=Br6L5Bcieas

Sun, 10/30/2011 - 19:07 | Link to Comment msmith
msmith's picture

This may be contribute as a catylist for the next major move for the markets.  An intermarket analysis shows that we may be very near to a significant turn in the markets.  After another possible push in "risk on", the bears are looking to gain control with a strong "risk off" move for the longer term.  Here is a look at the ES, DX, and GC.  http://bit.ly/tckY8L

Sun, 10/30/2011 - 19:18 | Link to Comment Atomizer
Atomizer's picture

Let's have a history lesson about capitalism.. Shall we? 

Jon Stevens Corzine (born January 1, 1947) is the former CEO of Goldman Sachs and a onetime American politician, who served as the 54th Governor of New Jersey from 2006 to 2010. He turns New Jersey upside down and becomes the CEO of MF. 

Jon Corzine, MF Global Chairman and CEO

Fri 21 Jan 11 | 12:01 AM ET

New Jersey's former Governor and Democratic Senator on the economic and political news of the week. 

Another cock sucker caught up in lies on core issues. Mr. Corzine has been exposed on death of the dollar program. Jon Cozine sure has a legacy in developing growth, just look as his stock.  MF Global is a mismanaged company to sell a message on how capitalism is bad.

 

Sun, 10/30/2011 - 19:14 | Link to Comment ArkansasAngie
ArkansasAngie's picture


It is a preposterous idea that abrogating bankruptcy laws is somehow better for society.  The only thing it does is keep the current 1%’ers’ in their seats of power.  If you’d let capitalism do its work, a redistribution of the malinvestment to this class would stop.

 

Here’s a radical idea.  Instead of bailing out banksters et al. let’s bailout their collateral damage victims.

 

And no I don't mean underwater home owners.

Sun, 10/30/2011 - 19:19 | Link to Comment Surly Bear
Surly Bear's picture

Capitalism doesn't bail out anybody, ever.

Sun, 10/30/2011 - 19:24 | Link to Comment bob_dabolina
bob_dabolina's picture

The name Corzine has one of those negative connotations. It almost sounds like an STD or something, ya know? Like... I got this outbreak of corzine all over my balls and now I have to see my doc.

That's really all I can add to this dialogue.

Mon, 10/31/2011 - 01:09 | Link to Comment Freddie
Freddie's picture

That POS Madoff who is probably one of the lowest humans in history - but he has more honor than Corzine. 

Many Madoff investors were/are scum.  I know one jerk off who does not know that I know he got screwed by Madoff.  This little MF'er deserved to get screwed.  Thank goodness I have almost nothing to do with this idiot.  I guess you could argue that much of NJ deserved to be screwed cause they voted for him.

Don't forget that it was Corzine at Goldman who was trading dot bomb IPOs on the IPO date.  They were tradng thin floats back and forth amongst each other to sucker main street into many worthless internet stocks.

Sun, 10/30/2011 - 19:26 | Link to Comment JW n FL
JW n FL's picture

 

 

there goes another one! but how??with the government / our tax dollar bailouts can anyone be going broke? they must have been honest?? or maybe just more crooked than the rest??

Sun, 10/30/2011 - 19:28 | Link to Comment Atomizer
Atomizer's picture

C'mon CNBC, get this fuckstick back on the air so we can see his body language. LOL

Sun, 10/30/2011 - 19:31 | Link to Comment Coldfire
Coldfire's picture

This is good news. Shareholders get wiped out, bondholders get haircuts and capital moves from weak hands to stronger hands. Creative destruction in action. Corzine must have really pissed in someone's Cheerios for this much reality to be permitted to apply.

Sun, 10/30/2011 - 19:44 | Link to Comment Atomizer
Atomizer's picture

Once again, this is all about displacing capitalism and replacing it with Government Control. As long as the government message is sold 24/7 on each propaganda channel, hope is an effective tool. Social media will cast the real truth.

Sun, 10/30/2011 - 19:34 | Link to Comment steveo
steveo's picture

FEAR FACTOR Bubble in NON-FEAR

Your Briefing on

FEAR FACTOR (FF)

When FF goes downward, that is increasing fear.   FF often leads the
market.    When FF keeps going down, although equities markets are
floating like a helium PIIG, that is time to watch out below.
Right now we have a total bubble in "NON FEAR"  Bubbles never end well.   Just ask Silver.

http://oahutrading.blogspot.com/2011/10/fear-factor-bubble-in-non-fear.html

Sun, 10/30/2011 - 19:37 | Link to Comment Caviar Emptor
Caviar Emptor's picture

So all at once, in the span of one week: sovereign debt defaults are suddenly possible (haircuts) and crony connected banks can fail.....What the hell is going on here? Is this the perfect riskless world we've become accustomed to? No! 

And all at once it turns out that risk has become real. Investors will view this with caution

Sun, 10/30/2011 - 19:39 | Link to Comment Zone1
Zone1's picture

I had to laugh when I heard that MF was looking to sell.  Who would buy a Wall St firm with no cash that isn't in Ch. 11?

Sun, 10/30/2011 - 19:41 | Link to Comment Hephasteus
Hephasteus's picture

Someone who likes paying off other peoples debts with other people's money. IE the fed.

Sun, 10/30/2011 - 20:22 | Link to Comment tickhound
tickhound's picture

the US taxpayer

Sun, 10/30/2011 - 19:40 | Link to Comment Caviar Emptor
Caviar Emptor's picture

The public can't take so much truthiness all at once. Bail out MF Global! 

Sun, 10/30/2011 - 19:41 | Link to Comment High Plains Drifter
High Plains Drifter's picture

http://www.youtube.com/watch?v=8K3nB7rIZwc

 

holiday hate road trip ................

Sun, 10/30/2011 - 19:42 | Link to Comment strangeglove
strangeglove's picture

NJ got off easy! Bitchez

Sun, 10/30/2011 - 19:42 | Link to Comment midgetrannyporn
midgetrannyporn's picture

They gave MF Global a Corzine injection and now its dead.

Sun, 10/30/2011 - 19:51 | Link to Comment bob_dabolina
bob_dabolina's picture

Here's another bankrupt Obama startup energy company. Just out from Reuters -

http://www.reuters.com/article/2011/10/30/us-beaconpower-bankruptcy-idUS...

Sun, 10/30/2011 - 19:52 | Link to Comment sheeple2012
sheeple2012's picture

When they found Corzine on the Garden State Parkway with his ass hanging out of the window, they should have just left him there to die as a monument to hypocrisy and greed

Sun, 10/30/2011 - 20:04 | Link to Comment strangeglove
strangeglove's picture

This is the only bankrupt daeler. Move along now

Sun, 10/30/2011 - 20:11 | Link to Comment jcaz
jcaz's picture

Everyone wondered why Corzine took the MF gig-  gee, now it's pretty clear-  he never really left GS.....

Sun, 10/30/2011 - 20:15 | Link to Comment bankonzhongguo
bankonzhongguo's picture

Is this another AIG in the making?

Sun, 10/30/2011 - 20:17 | Link to Comment Hephasteus
Hephasteus's picture

Hedge funds are leveraged through banks. Exploding hedgefunds mean exploding banks.

Sun, 10/30/2011 - 20:16 | Link to Comment kito
kito's picture

Its a good thing really smart people are in charge of our financial institutions........

Sun, 10/30/2011 - 20:27 | Link to Comment Everybodys All ...
Everybodys All American's picture

Why don't they just apply for bank holding status? Worked for Goldman and Morgan Stanley. Oh I forgot that's not in the plan.

One other thing. Jon Corzine has always been a useless pos. He has once again proven worthy of going to jail or worse. What a scum bag.

Sun, 10/30/2011 - 20:31 | Link to Comment mfoste1
mfoste1's picture

sorry OT, obamas "student loan relief plan" a joke......found to save between 4.50-7.00 per mo http://www.realclearpolitics.com/video/2011/10/26/krauthammer_if_student...

Sun, 10/30/2011 - 20:35 | Link to Comment Yen Cross
Yen Cross's picture

 It's a " wonderful" , world ...    Enjoy!  http://www.youtube.com/watch?v=hLIrS5dtTZI

Sun, 10/30/2011 - 21:29 | Link to Comment Yen Cross
Yen Cross's picture

 Tylers' we need a better , " Captcha".     The caped crusading " Quantifiables\\\\\\" >

 

     I love all the posts! Slewie you are on the roll! +1 .

Sun, 10/30/2011 - 22:31 | Link to Comment gwar5
gwar5's picture

Jon Corzine is beefing up his resume to be next US Treasury Secretary.

 

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