Yes Bank under pressure: Axis Trustee may seek contempt action against bank over AT1 bonds

Yes Bank, in an exchange filing, stated Axis Trustee Services Limited, functioning as the trustee for the economic sector loan provider’s Additional Tier 1 (AT1) bonds worth 8,415 crore, has actually asked the bank to renew the bonds and carry out all essential business actions within 3 days.

The trustee has actually alerted that failure to comply might trigger it to start contempt procedures versus Yes Bank, its directors and officers before the Supreme Court, declaring wilful disobedience of the court’s judgment.In its October 30 filing, Yes Bank stated it had actually interacted with Axis Trustee Services relating to the Supreme Court’s judgment worrying the AT1 bond write-off. The trustee reacted on October 28, asking the bank to restore the bonds and finish all needed business actions within 3 days.Yes Bank stated it reacted to the trustee on October 30, repeating its dedication to adhere to the Supreme Court’s judgment and suitable law. The bank likewise declined the claims of wilful disobedience, explaining the assertions in the trustee’s letter as unwarranted and without benefit. It included that it was analyzing the judgement and its ramifications in information.The disagreement associates with AT1 bonds worth 8,415 crore that Yes Bank crossed out in March 2020 as part of its restoration procedure. The Supreme Court supported the Bombay High Court’s judgment that annulled the write-off, leading the way for the shareholders to look for reinstatement.The trustee has actually looked for the turnaround of the write-off entries with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), together with the reinstatement of the bonds on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).Previously, CNBC-TV18, mentioning sources, reported that Axis Trustee had actually provided a notification dated October 28, offering Yes Bank 3 days to bring back the bonds in accordance with the Supreme Court’s judgment.Check out: CDSL Q2 results: Profit grows 24% to 174 crore; demat account base broadens 17% YoY