MF Global's parent company has won court approval for its liquidation plan.

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Judge Martin Glenn approved the plan Friday in U.S. bankruptcy court in Manhattan. MF Global Holdings Ltd., collapsed in late 2011. The firm failed after a calamitous $6.3 billion bet on bonds issued by debt-burdened European countries.

Former FBI director Louis Freeh is the trustee, meaning he is tasked with trying to recover money for customers and others that MF Global might owe. The judge's approval comes a day after Freeh filed a report lambasting MF Global's former CEO Jon Corzine and other top managers, saying they had ignored warnings of their chief risk officer. A spokesman for Corzine refuted Freeh's characterization.

The plan approved Friday lays out how MF Global will pay back some of its creditors.


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