The promoter of a housing finance company currently undergoing bankruptcy proceedings has made a revised offer to repay its dues. This development comes just days after a small finance bank emerged as the winning bidder at a challenge auction for the stressed entity. The promoter’s revised proposal includes an upfront payment of ?554 crore, with the remaining 60% of the admitted dues to be cleared over a period of 28 months, according to people familiar with the matter. The upfront payment includes ?360 crore of cash already available on the company’s books. The insolvency administrator did not respond to emailed queries. The administrator has admitted 60 claims aggregating ?1,363 crore. Last week, after 13 rounds of bidding, the successful bidder submitted the highest offer of ?977.5 crore, as reported earlier. The settlement proposal also involves a ?225 crore equity infusion by a Surat-based diversified group, which will acquire a 60% stake in the housing finance company. The group has interests across real estate, exports, renewable energy, and financial services, according to sources. The settlement offer has been submitted under Section 12A of the Insolvency and Bankruptcy Code (IBC), which allows for the withdrawal of insolvency proceedings if at least 90% of the committee of creditors (CoC) approves the proposal, typically through full repayment of lender dues. Under IBC rules, a promoter-led settlement can be approved only if the relevant regulator files a withdrawal petition before the bankruptcy court. The proposal also includes retaining the current administrator as chairman of the board and appointing auditors in consultation with the committee of creditors. Earlier, the promoter had proposed an upfront payment of 25%, with the balance to be paid over 26 months. That proposal was rejected by the CoC. The company’s financial stress came to light after auditors flagged discrepancies in its financial statements, leading to a regulatory probe.

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