When will the monetization and disposal of the assets of the debt fund schemes of Franklin Templeton start?

Actually, the monetization has already begun and you must have read in the newspapers that SBI MF, the trustee to execute the sale on behalf of Franklin Templeton, has already paid out Rs.9,120 crore as the first tranche to the unit holders of Templeton. From next week, SBI Mutual Fund will continue monetizing of assets of the 6 schemes of Franklin Templeton, which were shut in April 2020.

The monetization will continue depending on the amount of cash collected. What SBI has committed in the SOP is that every time there was a sizable amount in the kitty of the fund, they would undertake to distribute it pro-rata among the unit holders of the beleaguered funds of Templeton. The Supreme Court has already approved the standard operating procedure or SOP prepared by SBI MF for the process execution.

SBI MF confirmed that out of the 6 schemes, 5 were cash positive and the sixth scheme also had just about Rs.10 crore as debt in its books. The fund becomes cash positive only after the borrowings are repaid. Now the funds have accrued another Rs.1,370 crore for distribution. Till date, the 6 schemes have received cash flows worth Rs.15,272 crore in the last one year via maturities, coupons and prepayments. The final haircut is not known.