JP Morgan MF to pay off Amtek investors

MUMBAI: JP Morgan Mutual Fund, which faced redemption troubles after Amtek Auto defaulted on its debentures which the fund house was holding in two of its schemes, on Monday said that it will pay back all the unit holders as it has received funds after selling off the debentures.
After Amtek Auto defaulted on payment to JP Morgan MF, the fund house put the Amtek Auto's papers from two of its funds, India Short Term Income Fund and India Treasury Fund - into a separate account and allowed redemptions from the balance of the two funds' corpus.
On Monday, a release from JP Morgan MF said that on December 5 the fund house has completely sold the segregated asset and has received funds for the same. Subsequent to the sale, the fund house has allowed investors who had units of the segregated asset that held Ametk Auto debentures to redeem their units. Reportedly, SSG Capital, a special situations fund based in Hong Kong, bought over JP Morgan MF's investments in Amtek Auto.