11-02790-mg

Doc 363

Filed 11/21/11

Entered 11/21/11 11:59:17 Pg 1 of 4

Main Document

McGUIREWOODS LLP Dion W. Hayes Shawn R. Fox 1345 Avenue of the Americas Seventh Floor New York, NY 10105 Telephone: (212) 548-2100 Facsimile: (212) 548-2150 Attorneys for Virginia Power Energy Marketing Inc., Dominion Energy Marketing Inc., and Virginia Electric and Power Company

UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------x SECURITIES INVESTOR PROTECTION CORPORATION, Plaintiff, v. MF GLOBAL INC., Defendant. ---------------------------------------------------------------------x : : : Adv. Pro. No. 11-02790 (MG) : : : SIPA Liquidation : : : :

STATEMENT IN SUPPORT OF MOTION FOR ORDER AUTHORIZING APPOINTMENT 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
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.
1

11-02790-mg

Doc 363

Filed 11/21/11

Entered 11/21/11 11:59:17 Pg 2 of 4

Main Document

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 with

one 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 these

proceedings, 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.

11-02790-mg

Doc 363

Filed 11/21/11

Entered 11/21/11 11:59:17 Pg 3 of 4

Main Document

3.

However, in forming the Customer Committee, it is imperative that

representatives 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 Steering

Committee 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 the

return 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

11-02790-mg

Doc 363

Filed 11/21/11

Entered 11/21/11 11:59:17 Pg 4 of 4

Main Document

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. Hayes Dion W. Hayes Shawn R. Fox 1345 Avenue of the Americas Seventh Floor New York, NY 10105 Telephone: (212) 548-2100 Facsimile: (212) 548-2150 Attorneys for Virginia Power Energy Marketing Inc., Dominion Energy Marketing Inc., and Virginia Electric and Power Company

/35149775.4