Supreme Court on Friday extended a stay on an order by a lower court quashing the write-off of additional Tier-1 (AT1) bonds issued by Yes Bank.
The top court was hearing the appeal by Yes Bank against a Bombay High Court ruling that had set aside an administrator’s decision to write off AT1 bonds worth ₹8,450 crore in March 2020 as a part of the lender’s restructuring initiated by the Reserve Bank of India.
The RBI had appointed an administrator to manage Yes Bank’s affairs in March 2020 after its financial position seriously deteriorated.
The High Court, while pronouncing its decision on January 20, had kept the order for six weeks.
The Supreme Court on Friday extended the High Court’s stay until further orders.
AT1 bonds are high-yield securities that typically have loss-absorbing features, meaning they can be written off if a lender’s capital falls below a crucial level, which was invoked in Yes Bank’s case.