KOLKATA | MUMBAI: The promoter of Aviom India Housing Finance has proposed a settlement plan to lenders to settle Rs 1,385 crore in debts over 26 months, including accrued interest, according to sources.
Promoter Kajal Ilmi presented the proposal late Wednesday while the company is under insolvency proceedings initiated by the Reserve Bank of India (RBI). Six entities have expressed interest in takeover bids.
The proposal includes an upfront payment of Rs 350 crore, with the remaining accrued interest to be paid within 24 months after the initial 26-month principal repayment. Ilmi’s plan outlines full payment to operational creditors and employees totaling Rs 2.9 crore. Moreover, she has suggested the appointment of a professional CEO to manage the company during the repayment period, alongside the nomination of five directors, including two from the lenders, supported by an indemnity agreement.
Lenders have acknowledged the proposal’s receipt; however, approval seems improbable. An insider indicated, “The Committee of Creditors is unlikely to entertain her proposal, due to allegations of fund siphoning, which were backed by a forensic audit that lenders commissioned. She does not meet the fit-and-proper criteria.”
Ilmi expressed optimism for Aviom’s future, stating, “The outlook for Aviom is strong, especially if the settlement proposal is approved without any haircuts for lenders.”
The Aviom administrator has not responded to an email inquiry.
As reported by RealtyDailyNews on November 10, Unity Small Finance Bank has emerged as the leading contender to acquire Aviom India Housing Finance, offering Rs 775 crore upfront. Other bidders include Authum Investment & Infrastructure, Northern ARC, DMI Housing, KIFS Housing Finance, and Areion Group, which owns Omkara ARC.
The Committee of Creditors (CoC) is expected to meet next week to review the bids and has appointed PwC to assess their commercial viability.
