Like promoters, let us gain from equity: YES Bank AT-1 bondholders in court

The additional tier-1 (AT-1) bondholders of YES Bank on Tuesday presented their initial arguments before the Bombay High Court (HC), questioning why they were not being allowed to benefit from equity upside after the bank’s reconstruction scheme. Existing promoters who held 8 per cent stake will be benefiting from YES Bank’s reconstitution.

Along with the institutional bondholders, an individual investor — a cancer survivor — also moved the court to seek relief on Rs 10 crore exposure to AT-1 bonds. “Why should promoters benefit from equity investment as the bank becomes viable and we are at zero,” said senior advocate Janak