5:15 p.m. | Updated
The officials supervising the wind-down of MF Global's remains said on Saturday that they had reached a broad settlement over claims among the entities they oversee.
The trustees representing the failed firm's main brokerage arm and its holding company, James W. Giddens and Louis J. Freeh, agreed to settle claims with the administrators of MF Global's London arm.
The deal means that an estimated $500 million to $600 million will be returned to MF Global's brokerage unit, which has been paying back customers. Mr. Giddens had previously sought to take back abo ut $700 million from the London unit.
“These agreements are in the best interests of former customers and other creditors and allow us to request court approval for significant additional distributions for securities and commodities customers,†Mr. Giddens said in a statement. “Resolving complex issues with these entities marks a critical milestone in administering the MF Global Inc. estate.â€
Mr. Giddens said in the statement that he was seeking to make additional distributions to customers soon.
Mr. Giddens and Mr. Freeh also agreed to settle claims between their two entities, which had often feuded over money to pay out their claims. While MF Global's brokerage arm represents customers of the bankrupt firm, its holding company is charged with paying off creditors.
This year, Mr. Freeh called for a “global settlement†of claims among the three overseers, arguing that the disputes had slowed down the disposition of claims and return of money.
The confusion arose from MF Global's dipping into customer accounts - many held by farmers, ranchers and other small clients - to pay off the firm's needs. Authorities have been investigating the circumstances behind the firm's collapse.
The proposed settlement still requires approval from the federal judge overseeing MF Global's bankruptcy case.
A version of this article appeared in print on 12/23/2012, on page A24 of the NewYork edition with the headline: MF Global Officials Reach Accord Over Claims.