Franklin Templeton six debt schemes get just ₹ 40 cr

Our Bureau Mumbai | Updated on October 18, 2020 Published on October 18, 2020

Franklin Templeton has received the lowest inflow of just ₹ 40 crore in the six suspended debt schemes during the fortnight ended October 15, due to lower maturity and coupon payments.

The six schemes had received ₹ 1,078 crore in the fortnight ended September 30.

With fresh flow of ₹ 40 crore, the six schemes have received total cash flows of ₹ 8,302 crore as of October 15 from maturities, pre-payments and coupon payments since April 24, said the fund house which is facing investors’ backlash and fighting tough legal battle to wound up the schemes.

Earlier, the fund house had raised bank loan to meet unprecedented redemptions in the debt schemes and now utilising the inflows to repay debt.

Of the six debt schemes four debt schemes -- Franklin India Ultra Short Bond Fund, Dynamic Accrual, Low Duration and Credit Risk Fund have surplus of ₹ 5,116 crore for distribution among investors.

The debt levels in the other two schemes -- Short Term Income Plan and Income Opportunity Fund -- are at ₹ 978 crore and ₹ 503 crore.

“We wish to reiterate that the cash flows received so far are without the ability to efficiently monetize assets, which will only be possible after successfully completing the e-voting process," said the fund house.

As per the direction of the Supreme Court, the Karnataka High Court has completed hearing the arguments on matters related to the six schemes under winding-up and a judgement is expected soon.

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Published on October 18, 2020
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