A section of bondholders of Yes Bank have filed a petition against the Yes Bank reconstruction deal that entails a write down of the full value of their AT1 bond holdings. Axis Trustee Services, which represents several investors in AT1 bonds of Yes Bank, has filed the petition in Bombay High Court. On 06 March the RBI said it would work on a revival plan for Yes Bank but as part of the deal, bonds classified as Additional Tier 1 (AT1) capital will be written down fully. AT1 bonds are perpetual in nature and hence are like quasi-equity. They typically carry higher interest rates (up to 150 bps premium) than more senior debt as investors accept the risk they can lose their investment if the issuer goes under. Some of the major investors included Nippon India Mutual Fund and Franklin Templeton. The petition argues that the equity should have been first written down before writing down AT1 bonds. The petition is slated to be heard in court on March 11.