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Rejecting the discrimination allegations of Standard Chartered Bank (SCB) in ArcelorMittal’s bid for Essar Steel India Ltd (ESIL), the Committee of Creditors (CoC) on Wednesday said the foreign bank was given its legitimate share on the basis of equitable distribution.
The counsel appearing for CoC told the Ahmedabad Bench of the NCLT the allocation among the creditors happened based on the value of securities held by them in the distressed ESIL. Most of the secured financial creditors or members of CoC held direct shares in ESIL’s assets worth ₹45,000 crore, whereas SCB’s holding was in the form of ESIL equity shares.
The value of these equity securities worked out to ₹24 crore.
The CoC counsel rejected SCB’s claims on discrimination and unfair distribution of money among financial creditors, saying that SCB wanted to get a share from the assets of Essar Steel, which, according to it, belonged to the rest of the members of the CoC.
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