Axis Trustee Demands Restoration Of ₹8,415 Crore Yes Bank AT1 Bonds Within 3 Days, Warns Of Contempt Proceedings
Axis Trustee Services Limited has directed Yes Bank to restore its written-off Additional Tier 1 (AT1) bonds within three days, warning that failure to comply could trigger contempt proceedings before the Supreme Court. The trustee, representing AT1 bondholders, alleged that the private sector lender had wilfully disobeyed the Supreme Court's Oct 15 judgment concerning the Rs 8,415 crore bond…
Axis Trustee Services Limited has demanded Yes Bank to restore its written-off Additional Tier 1 (AT1) bonds within three days. The Axis Trustee has threatened with contempt proceedings before the Supreme Court if the lender fails to obey the directive. The writ-off was ordered by the Supreme Court on October 15th, after the bank's administrator exceeded his authority and acted contrary to the regulatory framework.
Yes Bank has acknowledged receiving the communication from the trust but has rejected allegations of deliberate non-compliance. The lender is examining the judgment and its implications before determining the permissible steps under the applicable law. Yes Bank has maintained that it is committed to complying with the court's directions.
It has stated that it is evaluating the ruling and considering the options available to it. The issue now revolves around the implementation of the judgment, with the trustee demanding prompt action and the bank insisting on assessing the legal requirements before proceeding.
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Also reported by 1 other outlet
- Axis Trustee threatens contempt action against Yes Bank over AT1 bonds business-standard.com
