Wait, Why Does Corzine’s MF Global Owe CNBC $845K?
4:08 pm, October 31st | by Amy Tennery
As you’re probably already well aware, Jon Corzine’s financial brokerage MF Global went into a rapid death spiral over the last week, and filed for bankruptcy today (don’t worry, Corzine’s still getting a $12.1 million exit package).
But where one failure emerges, so does an opportunity: to comb through the claims from this multibillion-dollar turd sandwich.
As Dealbreaker pointed out today, the bankruptcy filing for MF Capital has some odd moments. For starters, the filing lists just $2.3 billion in claims — which is a little bizarre for a firm that had “total liabilities of $39.7 billion.”
And then there’s the matter of MF’s creditors — which, as Dealbreaker points out, includes CNBC (not weird) as the seventh-largest one creditor (very weird). The busted brokerage owes them roughly $845,000 — which CNBC is probably not super thrilled about right now.
So, with total assets at around $41 billion, how bad will this be, among the canon of major U.S. bankruptcies? Actually, it’s pretty terrible, compared to other notable bankruptcies. It’s currently the eighth-biggest ever, according to the Wall Street Journal (with Lehman Brothers in a distant first at $691 billion, obviously). For comparison’s sake, Chrysler’s bankruptcy actually ranks behind it, with $39.3 billion in assets at the time of the bankruptcy.
If you want to take a look at the total filing, Forbes has a copy of the document online.