NARCL retains guarantees of Jaypee ex-promoters to boost recovery of dues

MUMBAI: National Asset Reconstruction Company (NARCL) has retained guarantees issued by former promoters of Jaiprakash Associates after its debt resolution, potentially offering lenders an additional avenue to recover dues beyond the insolvency payout, people aware of the matter said.

NARCL has already filed applications linked to both the corporate guarantee of Jaiprakash Power Ventures and personal guarantees of chairman Manoj Gaur and vice-chairman Sunil Kumar Sharma, and is exploring legal remedies to maximise recoveries from residual assets and obligations tied to Jaypee Group entities, they said.

The move could improve lender recoveries from 26.2% under the approved resolution plan, based on Adani Enterprises' payout of ?14,535 crore against total admitted claims and financial indebtedness of ?55,357.39 crore. Guarantees provided by Gaur and Sharma are around ?300-400 crore, people cited above said.