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 added two more schemes to the basket of “cash positive” schemes. As on August 31, 2020, Franklin India Low Duration Fund and Franklin India Credit Risk Fund turned cash positive taking the total count of cash positive schemes to four. Borrowing levels in the balance two schemes continue to steadily come down,” said Sanjay Sapre, president, Franklin Templeton AMC.
“The cash flows received so far are without the ability to efficiently monetise assets. The schemes will endeavour to accelerate monetisation post the successful completion of the e-voting exercise and the unitholder meet, which can only take place after the completion of the legal process,” he said in a letter to unitholders. A large portion of this was from the money received from Vedanta Ltd. On August 17, 2020 four out of the six schemes under winding up cumulatively received Rs 1050 crore as part of maturity proceeds and interest payments,” he said.
It said the Karnataka High Court hearings on the schemes under winding-up commenced on August 12, 2020 and the matter is being heard on a near daily basis. “The court has finished hearing the petitioners from the Delhi, Gujarat and Madras High Courts. The court is expected to hear us after SEBI completes their arguments,” it said.
“You might have heard some news about the possibility of distributing surplus cash to the unitholders. The interpretation of the regulation in this regard is currently under the consideration of the Karnataka High Court and it would be inappropriate to comment on the same. We will be happy to distribute the investment proceeds realized by the schemes in compliance with the applicable regulations, at the earliest,” the letter said.
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