Tenacious fund joins fight over MF Global plan

From ThomsonReuters: According to Reuters a hedge fund known for its determined pursuit of legal claims has joined JPMorgan Chase & Co's $928 million fight against the proposed liquidation plan for MF Global Holdings Ltd.  Aurelius Capital Management, known for its drawn-out battles with Argentina and in the bankruptcy of Tribune Co, has backed JPMorgan's bid to essentially step into the shoes of MF Global's finance unit and pursue claims against the holding company.

JPMorgan had been largely alone in its fight against the liquidation plan, which has the backing of roughly two-thirds of MF Global's creditors and the estate's trustee, former FBI director Louis Freeh.

At the center of the dispute is JPMorgan's allegation that a liability of MF Global Finance USA Inc is being counted twice, which is depressing the repayment to creditors of the finance unit to the benefit of creditors of the holding company.  The dispute stems from a $1.2 billion liquidity facility that JPMorgan arranged for MF Global Holdings. 

- See more at: http://newsandinsight.thomsonreuters.com/Legal/News/2013/02_-_February/Tenacious_hedge_fund_joins_fight_over_MF_Global_plan/#sthash.Ev5Cfoar.dpuf