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Deal with Yes Bank’s bondholders \'in process\', says administrator
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The administrator of India’s Yes Bank 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 Yes Bank. 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% stake in Yes Bank, which is struggling with bad loans.

But some Yes Bank 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.

TV channel ET Now reported on Wednesday that the bondholders had proposed to convert 85 billion Indian rupees ($1.15 billion) worth of bonds into 17 billion rupees 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.

India’s central bank, the Reserve Bank of India, did not immediately respond to a request for comment.

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.

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