In major setback, yes bank bond write-down canceled by court


In doing so, the court provided relief to bondholders who had $1.04 billion of exposure to these bonds.


The Bombay High Court in an oral ruling on Friday overturned the write-down of Additional Tier 1 Bonds (AT1) issued by Yes Bank Ltd, sources with direct knowledge of the matter said.

The final order has yet to be uploaded to the court’s website.

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These bonds were written off on March 13, 2020 by the Reserve Bank of India (RBI) and an administrator of Yes Bank, as part of a restructuring plan to rescue the bank.

With this, the court provided relief to bondholders who had an exposure of 84.5 billion rupees ($1.04 billion) to these bonds.

“The Bombay High Court had granted the bondholders’ petition against the write-off and the decision to write-off the AT1 bonds has been overturned,” said Srijan Sinha, a lawyer appearing on behalf of the bondholders’ association.

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“The Court has given Yes Bank 6 weeks to carry out the order.”

Yes Bank did not immediately comment on the order.

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