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Corzine's $12 million

posted by Adam Levitin

I know this is a bit tardy, but I've been meaning to post on this. A couple weeks ago, the media were making a big deal about Jon Corzine renouncing the $12 million in severance he is owed by MF Global. But he isn't. He's walking away from a $12 million general unsecured bankruptcy claim (as far as I can tell he's not secured) against an entity that looks to be deeply insolvent. Heck, his claim might be subject to equitable subordination. In any case, his bankruptcy claim for the severance isn't worth anything close to $12 million. If it pays out $1 million, I'd be surprised. The difference between the face and bankrutpcy value of the claim was universally missed in the reporting.


I'm shocked, SHOCKED to find that news media can't determine what the actual news is.

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