YES Bank crisis: Indiabulls Housing moves court seeking relief on AT1 bonds

Indiabulls Housing Finance moved the Bombay High Court on Monday, seeking relief on YES Bank's additional tier-1 (AT-1) bonds that be written down when the Reserve Bank of India (RBI) completes the reconstruction of the private lender.

Indiabulls Housing has an exposure of Rs 662 crore to YES Bank's AT-1 bonds.

An e-mail query sent to Indiabulls Housing Finance didn't elicit any response at the time of going to press.

According to court documents, the matter was mentioned on Monday. The plea will be clubbed with the petition filed by Axis Trustee, which represents the majority of the bondholders.

YES Bank, in an exchange disclosure, stated that AT1 bonds aggregating to Rs 8,415 crore will be fully written down, with immediate effect.

Earlier, bondholders acting through Axis Trustee were trying to negotiate the matter outside court. They proposed conversion of the bonds to equity, which would lead to 80 per cent haircut on their exposure, instead of the 100 per cent markdown.

Infra giant Larsen and Toubro (L&T) along with L&T Officers and Supervisory Staff Provident Fund (PF) have also moved the court separately. L&T has an exposure of Rs 100 crore to the bank's AT-1 bonds, while the PF has exposure of Rs 25 crore.

Overall, employee provident funds -- which handle retirement money for employees -- have Rs 237 crore of exposure to YES Bank's AT-1 bonds, show industry estimates. Mutual funds (MFs) exposure to the bonds stood at Rs 2,674 crore as of February 29, showed data from primemfdatabase.com