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Essar Steel CoC defends Standard Chartered claim at NCLAT

Steel News - Published on Fri, 17 May 2019

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Business Today reported that Senior advocate Gopal Subramanium representing the Committee of Creditors of Essar Steel informed National Company Law Appellatre Tribunal that Standard Chartered Bank is a secured financial creditor and one among us but the flow of money given by it was outside India. He said "We agree that Standard Chartered is a secured creditor. Their justification for giving the money was of totally different in nature. The money was transferred from India to a Mauritian entity for a US based step down unit.In normal circumstances we would have given money to them."

Over the issue of OSPIL, Subramanium said that it was a step-down firm and separate insolvency is going for that. He said "Orissa Slurry would not be a part of this resolution procees. Bhubaneshwar-based National Company Law Tribunal has already admitted Insolvency proceedings against it on May 13."

Standard Chartered, one of the secured financial creditors, claimed that bankers have clubbed Orissa Slurry Pipeline Ltd with Essar Steel in the auction to recover unpaid loans. It alleged that INR 2,500 crore, which should have been paid to Standard Chartered, has been diverted to lenders of OSPL. Standard Chartered, which is seeking to be treated at par with the secured financial creditor for its claim, said bankers have clubbed OSPL with Essar Steel.

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Posted By : Sanju Moirangthem on Fri, 17 May 2019
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