MUMBAI (Reuters) – The Bombay High Court, in an oral pronouncement on Friday, quashed the write-off of additional Tier 1 (AT1) bonds issued by Yes Bank Ltd, said legal sources with direct knowledge of the matter.
The final order is yet to be uploaded on the court website.
These bonds were written off by the Reserve Bank of India (RBI) and a Yes Bank administrator on March 13, 2020, as part of a restructuring plan to rescue the bank.
With this, the court offered relief to bondholders who had an exposure of 84.5 billion rupees ($1.04 billion) to these bonds.
“The Bombay High Court had allowed the bondholders’ petition against the write-off and the decision to write off the AT1 bonds has been quashed,” said Srijan Sinha, an advocate who appeared on behalf of the association of bondholders.
“The Court has granted Yes Bank 6 weeks to implement the order.”
Yes Bank did not immediately offer comments on the order. ($1 = 81.1310 Indian rupees)
(Reporting by Jayshree P Upadhyay; Editing by Savio D’Souza)
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