Friday, 5 February 2016
Last updated 56 min ago
May 13 2014 | 9:47am ET
If former MF Global CEO Jon Corzine wants more money to pay his legal bills, he should have to explain how he’s spending it, trustees for the collapsed futures brokerage said.
Corzine and other MF Global insiders facing litigation stemming from the firm’s failure last month asked the judge overseeing its bankruptcy to boost the amount they can spend on lawyers by one-third, to $40 million. The money comes from MF Global’s insurance policies and could otherwise be used to pay off the company’s creditors.
Trustees James Giddens and Bruce Bennett did not reject the request outright. But they criticized Corzine and other executives for spending exorbitantly and not doing enough to keep legal costs down. Should U.S. Bankruptcy Judge Martin Glenn approve the request, they said, there should be strings attached, in the form of oversight and cost controls.
Giddens complained that the former executives’ lawyers have dragged matters out and rejected cost-saving proposals. Glenn will hold a hearing on the matter on May 19.