Lakshmi Vilas Bank: LVB bondholders prepare for court battle

0

LVB wrote down a level 2 Basel III-compliant bond worth 320 crore on November 26, a day before its merger with DBS Bank India on instructions from the RBI.

Synopsis

A petition could be filed in Madras High Court this week, said people with the plan, joining shareholders and promoters who challenged the merger that extinguished their shares.

MUMBAI: Lakshmi Vilas Bank (LVB) bondholders have questioned the Reserve Bank of India (RBI) decision to write off the 320 crore level 2 debt they hold in the part of the bailout by DBS Bank India Ltd. They said this was not part of the final merger scheme, which made it clear that DBS India will take over all responsibilities, unless otherwise specified. The bondholders threatened to go to court. “We are taking legal advice on this matter. The

  • GIFT ITEM
  • FONT SIZE
  • SAVE
  • TO PRINT
  • COMMENT

Log in to read the full article

You have this Prime Story as a free gift

Already a member?

Special offer

Get 20% off

ON AND PRIME SUBSCRIPTION

Get the offer

Why ?

  • Exclusive Economic Times Stories, Editorials and Expert Reviews in more than 20 sectors

  • Stock analysis. Market research. Industry trends on more than 4000 shares

  • Own experience with
    Minimum ads

  • Comment and engage with the ET Prime community

  • Exclusive invitations to Virtual events with industry leaders

  • A trusted team of Journalists and analysts which can best filter the signal from noise

Leave A Reply

Your email address will not be published.