NEW YORK — Customers of the failed securities firm MF Global Holdings Ltd., who have been awaiting the fate of $1.6 billion in missing funds, have received an offer for their funds from Barclays Capital that would make them nearly whole.
The U.S. unit of the British bank has offered to pay customers with U.S. accounts 90% of their entire claim in exchange for the right to the rest, according to people familiar with the matter. That figure is above the 72% they have received so far from the trustee unwinding MF Global's brokerage unit.
The bank has offered to pay customers with foreign accounts 65% of their claims, a person familiar with the situation said. Those customers haven't received any of their funds back.
Separately, Royal Bank of Scotland has indicated it would offer an even higher value for claims, but only for those held by institutions, according to people familiar with the matter and a term sheet. That bank is offering 91 cents on the dollar for U.S. accounts and 66 cents on the dollar for foreign accounts.
MF Global customers have been awaiting the fate of their missing funds since the securities firm filed for Chapter 11 protection last October.
The offers were negotiated with a group of representatives from the Commodity Customer Coalition, an umbrella group made up of MF Global customers and led by Chicago fund manager James Koutoulas, according to people familiar with the matter.
Representatives for both Barclays and RBS declined to comment.