Aviom India Housing Finance promoter offers to settle dues as six entities put in bids
KOLKATA/MUMBAI: The promoter of Aviom India Housing Finance has submitted a settlement proposal to lenders, offering to clear Rs 1,385 crore in dues within 26 months, along with accrued interest, according to people familiar with the matter.
Promoter Kajal Ilmi submitted the proposal late on Wednesday, even as the company-currently undergoing insolvency proceedings initiated by the Reserve Bank of India ( RBI)-has already drawn takeover bids from six entities.
According to the proposal, there would be an upfront payment of Rs 350 crore while the accrued interest would be paid in 24 months after the initial 26 months of principal payment. Ilmi's plan also includes full repayment to operational creditors and employees amounting to Rs 2.9 crore. She has also suggested that lenders appoint a professional CEO to run the company during the proposed repayment period. The proposal recommends the appointment of five directors, including two lender nominees, and includes an indemnity agreement between the company and these directors.
Lenders have confirmed receipt of the proposal. However, approval appears unlikely. "It's unlikely that the Committee of Creditors would consider her proposal, as she has been accused of siphoning funds-allegations that were also substantiated in a forensic audit commissioned by the lenders," said an official in the know. "She won't clear the fit-and-proper criteria."
Promoter Kajal Ilmi submitted the proposal late on Wednesday, even as the company-currently undergoing insolvency proceedings initiated by the Reserve Bank of India ( RBI)-has already drawn takeover bids from six entities.
According to the proposal, there would be an upfront payment of Rs 350 crore while the accrued interest would be paid in 24 months after the initial 26 months of principal payment. Ilmi's plan also includes full repayment to operational creditors and employees amounting to Rs 2.9 crore. She has also suggested that lenders appoint a professional CEO to run the company during the proposed repayment period. The proposal recommends the appointment of five directors, including two lender nominees, and includes an indemnity agreement between the company and these directors.
Lenders have confirmed receipt of the proposal. However, approval appears unlikely. "It's unlikely that the Committee of Creditors would consider her proposal, as she has been accused of siphoning funds-allegations that were also substantiated in a forensic audit commissioned by the lenders," said an official in the know. "She won't clear the fit-and-proper criteria."
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