Standard Chartered challenges ArcelorMittal’s Essar Steel bid again

Standard Chartered challenges ArcelorMittal’s Essar Steel bid again

After filing a caveat petition in late October against ArcelorMittal SA’s resolution plan for Essar Steel which left Standard Chartered left out in the cold, the London-based bank has approached the Ahmedabad bench of the National Company Law Tribunal (NCLT) again, alleging that the committee of creditors has illegally sought a discriminatory resolution plan outside the purview of the Insolvency and Bankruptcy Code, which places its own interests above those of others.

Standard Chartered filed an interlocutory petition last Wednesday against the CoC in the Essar Steel resolution case alleging discrimination by the CoC. Interlocutory petitions are filed to offer additional information to a court in an ongoing litigation or to request urgent relief.

According to the petition, a copy of which Mint has reviewed, Standard Chartered said that had advanced a loan of $500 million with a corporate guarantee to an Essar Steel subsidiary in 2010 so that the latter could secure its long-term coal requirement. Read More

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