Franklin Templeton Asset Management, which closed down six credit risk schemes in April, on Thursday said the schemes have received Rs 6,486 crore from maturities, pre-payments and coupons.
“We have now joined two more schemes to the basket of “cash positive” schemes. On August 31, 2020, Franklin India Low Duration Fund and Franklin India Credit Risk Fund turned cash positive taking the entire count of money positive schemes to four. Borrowing levels within the balance two schemes still steadily come down,” said Sanjay Sapre, president, Franklin Templeton AMC.
“The cash flows received thus far are without the power to efficiently monetise assets. The schemes will endeavour to accelerate monetisation post the successful completion of the e-voting exercise and therefore the unitholder meet, which may only happen after the completion of the legal process,” he said during a letter to unitholders. an outsized portion of this was from the cash received from Vedanta Ltd. On August 17, 2020 four out of the six schemes under completing cumulatively received Rs 1050 crore as a part of maturity proceeds and interest payments,” he said.
It said the Karnataka supreme court hearings on the schemes under winding-up commenced on August 12, 2020 and therefore the matter is being heard on a near day to day . “The court has completed hearing the petitioners from the Delhi, Gujarat and Madras High Courts. The court is predicted to listen to us after SEBI completes their arguments,” it said.
“You may need heard some news about the likelihood of distributing surplus cash to the unitholders. The interpretation of the regulation during this regard is currently under the consideration of the Karnataka supreme court and it might be inappropriate to discuss an equivalent . we’ll be happy to distribute the investment proceeds realized by the schemes in compliance with the applicable regulations, at the earliest,” the letter said.
