The promoter of a housing finance company has submitted a settlement plan to lenders, proposing to repay ?1,385 crore of outstanding dues over a 26-month period, along with accumulated interest, according to people familiar with the matter. The proposal was submitted late Wednesday, even as the firm—currently undergoing insolvency proceedings initiated by the regulator—has already received six takeover bids.Under the plan, the promoter has offered an upfront payment of ?350 crore, with accrued interest to be cleared within 24 months after the principal amount is repaid over the initial 26-month period. The proposal also includes full repayment of dues owed to operational creditors and employees. Additionally, the promoter has suggested that lenders appoint a professional CEO to oversee the business during the repayment phase. A five-member board, including two lender-nominated directors and an indemnity arrangement for these members, has also been proposed. Lenders have confirmed receiving the settlement plan, but approval appears uncertain. According to an official aware of the discussions, the Committee of Creditors is unlikely to accept the proposal due to allegations of fund diversion against the promoter, supported by findings from a forensic audit commissioned by the lenders. The official added that the promoter may not meet the required eligibility criteria. The promoter, however, expressed confidence in the company’s future and said the settlement plan, if approved without any lender haircuts, would help stabilise the business. The insolvency administrator declined to comment. As previously reported, one bidder has emerged as the frontrunner with the highest upfront cash offer, while the remaining interested parties have submitted competing bids. The Committee of Creditors is expected to meet next week to evaluate the proposals and has engaged an independent professional firm to assess their commercial viability.