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MF Global Wants That $20 Million It Never Borrowed Back

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The trustee unwinding MF Global Holdings brokerage wants to recover $20 million for customers from a commodities firm that extended a line of credit to MF Global in 2002. But the commodities broker, an affiliate of Koch Industries Inc., says there is one big problem with that: Neither the trustee, James Giddens, nor MF Global ever accessed any of the $20 million. In a Thursday filing with U.S. Bankruptcy Court in Manhattan, Koch Supply & Trading LP said the $20 million letter of credit was money that MF Global could access only if Koch breached its customer agreement with MF Global. As the money was never accessed and the agreement expired at the end of 2011, Koch says it shouldn't have to pay anything. [WSJ]