Yes Bank, in an exchange filing, said Axis Trustee Services Limited, acting as the trustee for the private sector lender’s Additional Tier 1 (AT1) bonds worth ₹8,415 crore, has asked the bank to reinstate the bonds and undertake all necessary corporate actions within three days.
The trustee has warned that failure to comply could prompt it to initiate contempt proceedings against Yes Bank, its directors and officers before the Supreme Court, alleging wilful disobedience of the court’s judgment.
In its October 30 filing, Yes Bank said it had communicated with Axis Trustee Services regarding the Supreme Court’s judgment concerning the AT1 bond write-off. The trustee responded on October 28, asking the bank to reinstate the bonds and complete all necessary corporate actions within three days.
Yes Bank said it responded to the trustee on October 30, reiterating its commitment to comply with the Supreme Court’s judgment and applicable law. The bank also rejected the allegation of wilful disobedience, describing the assertions in the trustee’s letter as baseless and without merit. It added that it was examining the judgement and its implications in detail.
The dispute relates to AT1 bonds worth ₹8,415 crore that Yes Bank wrote off in March 2020 as part of its reconstruction process. The Supreme Court upheld the Bombay High Court’s ruling that annulled the write-off, paving the way for the bondholders to seek reinstatement.
The trustee has sought the reversal of the write-off entries with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), along with the reinstatement of the bonds on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Earlier, CNBC-TV18, citing sources, reported that Axis Trustee had issued a notice dated October 28, giving Yes Bank three days to restore the bonds in accordance with the Supreme Court’s ruling.
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Yes Bank under pressure: Axis Trustee may seek contempt action against bank over AT1 bonds
