New Delhi, May 28 -- A plan by lenders to sell personal and corporate guarantees on loans given to erstwhile Essar Steel, nearly seven years after the steelmaker's insolvency resolution, is expected to face a long and difficult recovery process.

Led by India's largest lender State Bank of India (SBI), 12 lenders have decided to seek bidders for these guarantees, according to a document on the website of BoB Capital Markets Ltd.

The admitted claims during the Essar Steel insolvency was Rs.49,000 crore, of which Rs.41,970 crore or 92% was recovered under the resolution plan. The BoB Capital Markets document said Rs.13,751.21 crore is the outstanding liabilities due and payable under the Essar Steel guarantees as on 31 January 2022 and inc...