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Two more debt schemes of Franklin Templeton India have repaid the entire outstanding loans. With this, four of the six debt schemes that are being wound up has turned cash positive as of August-end.
Franklin India Low Duration Fund has received Rs 204 crore till date and turned credit positive of Rs 190 crore while Credit Risk Fund got Rs 546 crore and became credit positive of Rs 98 crore.
In all, the fund house the six debt schemes received Rs 1,498 crore from maturities, pre-payments and coupon payments during the fortnight ended August. This has taken the overall cash flows to Rs 6,486 crore since the schemes were suspended for trading on April 24 due to heavy redemption pressure.
Two other schemes Ultra Short Bond and Dynamic Accrual Fund, which were already cash positive, has Rs 3,193 crore and Rs 364 crore for distribution among investors once the Karnataka High Court give permission to seek investors approval.
The remaining two schemes Short Term Income Plan and Income Opportunity Fund have outstanding loan of Rs 1,055 crore and Rs 535 crore.
The mandatory unitholders meet continue to remain suspended till further directions received from the Karnataka High Court, said the fund house. Active monetisation of assets of the schemes and distribution of investment proceeds to the unitholders will be possible only after successful e-voting, it added.
The six debt has seen a series of default on interest payment on its învestments in last few months. The latest to default on interest payment was Future Group company Rivaaz Trade Ventures on Monday.
Franklin India Income Opportunities has the highest exposure of 6 per cent of AUM to Rivaaz Trade Ventures while the Short Term Income Plan has 5 per cent exposure. The Dynamic Accrual and Credit Risk funds have three per cent and 0.33 per cent învestment in Rivaaz.
Earlier, învestment in other Future Group companies Nufuture Digital (India) and Future Ideas Company debt papers was valued at zero after they defaulted on payment obligation.
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