Jon Corzine and the team of executives who toppled commodities brokerage firm MF Global don’t deserve another $10m of insurance monies to pay their already 'exorbitant' legal bills, a bankruptcy administrator said.
The New York Post reports that Corzine, the disgraced former MF Global CEO and New Jersey governor, wants the $30m defence-fund cap lifted, but the court-appointed administrator responsible for liquidating MF Global Holdings, the brokerage firm’s parent company, is fighting the move.
While the money would come from insurance, it could reduce distributions to other creditors, bankruptcy experts said.
'From February through September 2013, defense fees incurred to date exceed $40m, a figure that has never been adequately explained or justified and which suggests duplication of efforts', lawyers for the plan administrator argued in a sharply worded retort.
Lawyers for Corzine and his former colleagues argued that they 'have tried hard to keep costs down … (but) the mounting exorbitant defence fees tell a different story', the lawyers in charge of the estate said.
To access the complete New York Post article hit the link below