Speech intelligibility in multitalker settings improves when the target speaker is spatially separated from the interfering speakers. A factor that may contribute to this improvement is the improved detectability of target-speech components due to binaural interaction, in analogy to the Binaural Masking Level Difference (BMLD). This would allow listeners to hear target speech components within specific time-frequency intervals that have a negative SNR, similar to the improvement in the detectability of a tone in noise when these contain disparate interaural difference cues. To investigate whether these negative-SNR target-speech components indeed contribute to speech intelligibility a stimulus manipulation was performed where all target components were removed when local SNRs were smaller than a certain criterion value. It can be expected that for sufficiently high criterion values, target speech components will be removed that do contribute to speech intelligibility. For spatially separated speakers, assuming that a BMLD-like detection advantage contributes to intelligibility, degradation in intelligibility is expected already at criterion values below 0 dB SNR. However, for collocated speakers it is expected that higher criterion values can be applied without impairing speech intelligibility. Results show that degradation of intelligibility for separated speakers is only seen for criterion values of 0 dB and above, indicating a negligible contribution of BMLD-like processing in multitalker settings. These results show that the spatial benefit is related to a spatial separation of speech components at positive local SNRs rather than to a BMLD-like detection improvement for speech components at negative local SNRs.