Franklin Templeton Asset Management (India) Private Limited has approached at least three global distressed asset buyers - Ares SSG (SSG Capital), Värde Partners, Inc. and Farallon Capital Management, L.L.C.- offering to sell Vodafone Idea Limited (NSEI:IDEA)'s (Vi) outstanding bonds, people familiar with the matter told ET. The fund house is said to have already written down the full value of an estimated portfolio of about INR 12,500 million of Vi papers before any redemption. The value to those securities became nil after being separated from other financially stable portfolios.

Those papers have been downgraded to the 'junk' category but not 'default'.To be sure, Vi has been serving interest payments or repayments on those bonds on time without any delay. Franklin Templeton, SSG and Farallon did not respond to ET's queries. Varde Partners declined to comment.