Standard Chartered slams Essar Steel’s CoC for holding ‘secret’ talks with ArcelorMittal


Standard Chartered slams Essar Steel’s CoC for holding ‘secret’ talks with ArcelorMittal

Standard Chartered Bank Tuesday slammed Essar Steel’s Committee of Creditors (CoC) for holding “secret” negotiations with ArcelorMittal, resulting in “illegality” that reduced bid amount and jeopardised its interest.

Resuming arguments before the National Company Law Appellate Tribunal (NCLAT), senior counsel Kapil Sibal termed the secret settlement as “scam” that led to lenders of Orissa Slurry Pipeline Infrastructure Ltd gaining Rs 2,500 crore out of Rs 42,000 crore that ArcelorMittal had bid to takeover Essar Steel.

He read out from a 9-page note StanChart had submitted before the NCLAT to argue that “illegality resulted from secret negotiations between the core committee (CoC) and ArcelorMittal India”, which was detrimental to all creditors. Read more

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