The promoter of Aviom India Housing Finance has put forward a settlement plan to lenders, offering to repay ?1,385 crore of outstanding dues over 26 months, along with accumulated interest, according to people aware of the development. Kajal Ilmi, the company’s promoter, submitted the proposal late Wednesday, even as the firm—currently in insolvency proceedings initiated by the RBI—has already received six takeover bids. Under the proposed plan, Ilmi has offered an upfront payment of ?350 crore, with accrued interest to be cleared within 24 months after the repayment of the principal over the initial 26-month period. Her plan also promises full repayment of ?2.9 crore owed to operational creditors and employees. She has additionally suggested that lenders appoint a professional CEO to manage the business during the repayment phase. The plan also proposes a five-member board, including two nominees from the lenders, along with an indemnity arrangement for these directors. Lenders have acknowledged receiving the proposal, but approval seems doubtful. An official familiar with the matter said the Committee of Creditors is unlikely to accept it because Ilmi has been accused of diverting funds, allegations supported by a forensic audit commissioned by the lenders. “She would not meet the fit-and-proper criteria,” the official noted. Ilmi, however, told ET on Thursday that she remains confident about the company's prospects. She said Aviom’s future is strong, particularly if the settlement plan is approved without lenders taking any haircuts. The administrator declined to comment. As previously reported by ET on November 10, Unity Small Finance Bank is currently the leading bidder, offering ?775 crore in upfront cash to acquire Aviom, which is backed by impact investors. Other bidders include Authum Investment & Infrastructure, Northern ARC, DMI Housing, KIFS Housing Finance, and Areion Group, the NBFC that owns Omkara ARC. Officials said the Committee of Creditors is expected to meet next week to review the bids and has appointed PwC to assess their commercial viability.
https://www.livehomes.in/news_letter
