Yes Bank Shareholders, Watch Out !

Source: Letter written to RBI by AT-1 Bond Holders of Yes Bank

One reply on “Yes Bank Shareholders, Watch Out !”

It is completely wrong, unethical and probably illegal (on the verge of being illegal – you cannot every time hold the “letter of law” as supreme v/s “spirit of law” whenever there is a public debacle and you have to punish/fleece money from poor public) also to write down the AT1 perpetual bond holders to zero value.

RBI/Finance Ministry must clearly understand that from any legal or otherwise perspective, the AT1 perpetual holders cannot have superior rights and therefore do have inferior obligations at the time of bank going into liquidation/reconstruction/bail-out and therefore, first the equity has to be adjusted/written down first, and then, preference shares and after doing both these adjustments/write down, only the AT1 perpetual bond holders can be affected. In no way, before that. It is illegal also.

People are contemplating to have legal recourse on this. L&T Finance is already planning to file a legal case today itself for the redressal.
How can you ‘first write-down’ AT1 perpetual bond holders money before you write-off common and preference equity holders.
It is unfathomable, illogical and of course illegal as well.

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