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Deal with bondholders 'in process', says Yes Bank administrator

"We are in the process," said Prashant Kumar, the administrator appointed by the Reserve Bank of India (RBI)

Alexandra Ulmer & Abhirup Roy | Reuters  |  Mumbai 

Prashant Kumar, administrator of Yes bank | Photo: Kamlesh Pednekar
Prashant Kumar, administrator of Yes bank | Photo: Kamlesh Pednekar

The administrator of India's told Reuters a deal was being discussed with some bondholders who have opposed a state-led rescue, a move that could clear the way for a restructuring of the stricken lender.

"We are in the process," said Prashant Kumar, the administrator appointed by the Reserve Bank of India (RBI), which has taken control of He added that he hoped a deal would be reached later on Wednesday or on Thursday but declined to provide details of the agreement being discussed.

Under the terms of India's rescue plan, set out earlier this month, the State Bank of India would take a 49 per cent stake in Yes Bank, which is struggling with bad loans. But some bondholders filed a court petition against the rescue deal, which would see them taking a writedown, according to a source and a document seen by Reuters.

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TV channel ET Now reported on Wednesday that the bondholders had proposed to convert Rs 8,500 crore ($1.15 billion) worth of bonds into Rs 17 billion in equity, citing unnamed sources.

Axis Trustee Services Ltd, which represents several investors in so-called AT1 bonds issued by Yes Bank, did not immediately respond to a request for comment.


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The RBI, did not immediately respond to a request for comment.

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The bondholders' petition was set to be heard in court on Wednesday but the case did not appear on a Bombay High Court schedule seen by Reuters.

Yes Bank's founder and former managing director, Rana Kapoor, was also due to appear in court on Wednesday. Kapoor, who was arrested on Sunday and remanded until Wednesday, faces charges of money-laundering.

He denies wrongdoing and his lawyer said he had been made into "a scapegoat" due to public resentment at Yes Bank after the central bank imposed limits on withdrawals.

First Published: Wed, March 11 2020. 16:45 IST
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