Yes Bank challenges Bombay High Court ruling on AT1 bond write-off
Yes Bank has reportedly challenged the Bombay High Court ruling on the write-off of Additional Tier-1 (AT1) bonds worth ₹8,400 crore issued by the , bringing relief to investors.
The bonds were written off as part of a restructuring plan to rescue Yes Bank in March 2020. Equity holders, on the other hand, did not face a similar write-down, but 75% of their shares were subject to a lock-in for three years.
AT1 bonds are high-yield securities that typically have loss-absorbing features, meaning they can be written off if a lender’s capital falls below a crucial level, which was invoked in Yes Bank’s case.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.