Yes Bank asks Supreme Court to review ruling on AT-1 bond write-off

Yes Bank has asked India’s Supreme Court to review its ruling on the bank’s AT-1 bonds.

The court last month upheld a Bombay High Court decision that overturned the write-off of bonds worth 84.15 billion rupees.

The bonds were written off during a restructuring after Yes Bank was declared insolvent six years ago.

New investors were brought in under the restructuring scheme, and the bank’s administrator ordered the bonds written off.

The Supreme Court said the administrator had no authority to do that once the scheme was finalised.

Bondholders are seeking a plan to restore the bonds, and their representative has filed a contempt petition alleging the bank has not provided a concrete roadmap.

AT-1 bonds are high-risk debt that can be written off or converted into shares when a bank faces financial stress.

The Supreme Court will consider Yes Bank’s review petition; the sources give no timetable.