Statement in Support of Motion for Order a - Mg Statement

8/3/2019 Statement in Support of Motion for Order a - Mg Statement

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McGUIREWOODS LLP

Dion W. Hayes

Shawn R. Fox

1345 Avenue of the Americas

Seventh Floor

New York, NY 10105

Telephone: (212) 548-2100Facsimile: (212) 548-2150

Attorneys forVirginia Power Energy Marketing Inc.,

Dominion Energy Marketing Inc., andVirginia Electric and Power Company

UNITED STATES BANKRUPTCY COURT FORTHE SOUTHERN DISTRICT OF NEW YORK

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SECURITIES INVESTOR PROTECTIONCORPORATION,

Plaintiff,

v.

MF GLOBAL INC.,Defendant.

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Adv. Pro. No. 11-02790 (MG)

SIPA Liquidation

STATEMENT IN SUPPORT OF MOTION FOR ORDER AUTHORIZINGAPPOINTMENT OF OFFICIAL COMMITTEE OF COMMODITY BROKER

CUSTOMERS AND APPROVING COMPENSATION

OF ALLOWED FEES AND EXPENSES OF COMMITTEE PROFESSIONALS

Virginia Power Energy Marketing Inc., Dominion Energy Marketing Inc., and

Virginia Electric and Power Company (collectively, "Dominion")1, by and through their

undersigned counsel, hereby file their Statement in Support of the Motion (the

Motion)2

of certain commodity broker customers of MF Global Inc. (MFGI) for the

entry of an order pursuant to sections 105, 503 and 705 of Title 11 of the United States

1 Each of the entities that comprise Dominion is a direct or indirect subsidiary of Dominion Resources, Inc.

Each of the entities was a customer of MFGI on the Petition Date that traded commodities through MFGI,

and each has a substantial customer claim against MFGI.2 Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Motion.

11-02790-mg Doc 363 Filed 11/21/11 Entered 11/21/11 11:59:17 Main DocumentPg 1 of 4


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Code (the "Bankruptcy Code"): (i) authorizing the appointment in the MFGI Proceeding

of an official committee of commodity broker customers of MFGI (the Customer

Committee), and (ii) approving compensation of allowed fees and expenses of

committee professionals as administrative expenses of the commodity customer property

estate [Docket No. 161] and state as follows:

1. Dominion supports the Motion to appoint the Customer Committee withone significant reservation. Dominion asserts that it is imperative to have a Customer

Committee in the MFGI Proceeding so that the common goal of all customersthat each

customer receives access to its cash, securities and other property held for its benefit at

MFGI as soon as possiblecan be unified in one entity and be efficiently asserted on

behalf of all customers in the MFGI proceeding. A Customer Committee will provide

customers with the ability to have their common interests voiced by one entity whose sole

duty is to advocate for these customers and to monitor and promote actively their

common interests in the MFGI Proceeding. While providing the Trustee with a singular

party for purposes of dialogue regarding procedures and common issues among the

thousands of customers with claims in the MFGI Proceedings, a Customer Committee

would also assist in efficient and timely communication back to the constituency it would

represent.

2. Moreover, as described in the Motion, due to the complexities of theseproceedings, all of the diversely situated customers of MFGI would gain the benefit of

qualified and experienced counsel to aid them in advocating the common needs and

concerns of customers of MFGI.



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3. However, in forming the Customer Committee, it is imperative thatrepresentatives from each group of differently situated commodity broker customers be

appointed (e.g., those whose accounts were transferred under one of the bulk transfer

orders, customers who only held cash positions on the Petition Date, customers that

liquidated their positions between the Petition Date and the entry of the bulk transfer

orders, etc.) to ensure that the Customer Committee adequately voices these common

goals for each of these unique customer groups.

4. It is not clear from the Motion what interests the members of the SteeringCommittee hold or whether their appointment to a Customer Committee would be

appropriate. There has been no disclosure of the details behind whom the entities on the

Steering Committee are, whether they are inter-related (though this is likely based on

their names), or how each of these commodity customers is situated in regard to their

trade positions and/or collateral positions. Such inter-related entities would not be

appropriate to be on the Customer Committee. Likewise, if the Steering Committee does

not represent a cross section of the customers of MFGI, their appointment is not

appropriate.

5. Dominion, due to its diverse and significant interests in this case and in thereturn of its property, supports the Motion to the extent that the Court ensures that the

customers appointed to the Customer Committee are representative of each diversely

situated group of MFGI customers. Dominion further requests that it be considered for

inclusion as a member of the Customer Committee.

WHEREFORE, Dominion respectfully requests this Court enter an Order (i)

approving the Motion, (ii) requiring a representative from each group of differently



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situated customers be appointed to the Customer Committee, and (iii) granting such other

and further relief as this Court deems just and proper.

Dated: November 21, 2011 McGUIREWOODS LLP

s/Dion W. HayesDion W. Hayes

Shawn R. Fox1345 Avenue of the Americas

Seventh Floor

New York, NY 10105Telephone: (212) 548-2100

Facsimile: (212) 548-2150

Attorneys forVirginia Power Energy Marketing

Inc., Dominion Energy Marketing Inc., andVirginia Electric and Power Company

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Documents

Statement in Support of Motion for Order a - Mg Statement