The country’s top court asked the asset manager on Dec. 3 to initiate steps to meet unit holders in a week, as it agreed to hear Franklin’s appeal against a lower court verdict that had blocked winding up the debt funds
without investor consent.
If the investors vote down the resolution, the shut funds “would be required to reopen immediately and may need an emergency liquidation of securities, if a high volume of redemption is received,” Franklin said in the statement. “This may entail distress sales of securities in order to meet the redemptions received.”
The Supreme Court is scheduled to hear the case next on Dec. 9.
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