KOLKATA | MUMBAI: The promoter of Aviom India Housing Finance is currently in bankruptcy proceedings and has submitted a revised repayment proposal. This development follows Unity Small Finance Bank winning the bidding for Axiom in a challenge auction.
Promoter Kajal Ilmi indicates that the offer includes an upfront payment of ₹554 crore, with the remainder (60% of the owed amount) to be settled over the next 28 months. This upfront payment consists of ₹360 crore in cash available on the company’s books.
Aviom India’s administrator, Ram Kumar, has not responded to emailed inquiries and has acknowledged 60 claims totaling ₹1,363 crore. Among the participants last week, Unity SFB made the highest bid of ₹977.5 crore after 13 rounds of auctioning, as reported by RealtyDailyNews on December 23.
Ilmi’s offer also encompasses a ₹225 crore equity injection from Enn Enn Corp., located in Surat, which aims to acquire a 60% stake in Aviom. Enn Enn Corp. is diversified across sectors such as real estate, exports, renewable power, and financial services, as stated by sources.
The proposal has been filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), permitting the withdrawal of insolvency proceedings if 90% of the committee of creditors (CoC) approves the settlement, typically through full repayment of outstanding dues.
According to IBC regulations, a promoter’s request can only be sanctioned if the Reserve Bank of India (RBI), in this case, submits a withdrawal petition to the bankruptcy court.
Ilmi has also invited administrator Kumar, a former chief general manager of Punjab National Bank, to continue as chairman of the board, and suggested that auditors be appointed in coordination with the CoC.
“We are an impact-driven, profitable company, and there’s no justification for lenders to take any write-downs,” Ilmi stated. “The governance framework outlined in our proposal is solid, and the net present value is enticing. I am confident stakeholders will approve this proposal as it maximizes value for lenders and presents a swift resolution.”
Previously, Ilmi proposed a 25% upfront payment with the remaining balance due over 26 months, a plan that the CoC rejected.
The troubles facing Aviom arose after auditors identified inconsistencies in financial statements, triggering a probe by the National Housing Bank.
