On Tuesday, Judge Martin Glenn in the U.S. Bankruptcy Court of the Southern District of New York ruled to close the estate of the defunct MF Global and repay its customers in full. The amount to be released is $1.8 billion.

MF Global was a commodity broker that filed for bankruptcy in October 2011 as a result of its billion dollars shortfall in segregated account. The firm's journey to bankruptcy began when it purchased a huge amount of sovereign debts from countries entangled in the European debt crisis using the customers fund.

The decision to purchase high risk debt from CEO Jon Corzine made the firm to lose $1.6 billion of customers' money. On October 31, 2011 MF Global filed for bankruptcy and Jon Corzine resigned from his position. Prior to file the bankruptcy, MF Global held a $7.3 billion of customers assets according to Commodity Futures Trading Commission.

In Tuesday's decision, Judge Martin Glenn officially closed the property of MF Global, repaid the customers in full and discharged the trustee James Giddens.

The federal appointed trustee, James Giddens said to PR Newswire, "This outcome could not have been achieved without the guidance, cooperation and assistance of Judge Martin Glenn and the Bankruptcy Court, the Securities Investor Protection Corporation, the Commodity Futures Trading Commission, several committees of the Senate and House of Representatives, regulators and other parties."

Giddens also praised the law whic protect the customers, saying, "The end of the liquidation demonstrates the effectiveness of the Securities Investor Protection Act and the Bankruptcy Courts at handling even unprecedented failures of regulated broker-dealers and commodities firms."

In the court hearing, Judge Glenn said as quoted by Wall Street Journal, "What made this case somewhat unique was that many of the MF Global Inc. customers were farmers in the Midwest, who used commodity trading as a way of protecting their financial interest."

Judge Glenn also said the successful effort in recovering customer assets means the farmers would be able to make mortgage payments.

According to USA Today, the Securities Investor Protection Corporation, a federally-mandated company that works to return cash, stock and other securities to brokerage customers, will return the $8.1 to all customers. The distribution will include full allowed claims by MF Global customers at $6.9 billion, $35 million full-allowed claims by secured administrative and priority general claimants, and also $219 million to cover 95% of unsecured general claimants.

Judge Martin Glenn in the U.S. Bankruptcy Court of the Southern District of New York ruled to close the estate of the defunct MF Global and to repay its customers in full on Tuesday. With the court ruling, the liquidation case of MF Global is now officially closed