Post- auction, Aviom India Housing Finance promoter tables a full settlement plan

Following a challenge auction where Unity Small Finance Bank emerged as the highest bidder, the promoter of Aviom India Housing Finance, Kajal Ilmi, has submitted a revised full settlement plan to creditors. The offer includes an upfront payment of ₹554 crore, comprising ₹360 crore already held by the company, with the remaining 60% of dues to be cleared over 28 months. Ilmi’s proposal also involves a ₹225 crore equity infusion from Enn Enn Corp., which would acquire a 60% stake in Aviom.

The settlement offer is made under Section 12A of the Insolvency and Bankruptcy Code (IBC), requiring approval from at least 90% of the committee of creditors (CoC) and a withdrawal petition from the Reserve Bank of India (RBI). Ilmi asserts that the company is profitable and capable of full repayment without lenders needing to accept “haircuts,” and proposes maintaining the current administrator, Ram Kumar, as chairman and appointing auditors in consultation with the CoC.

This revised offer follows a previous proposal for a 25% upfront payment over 26 months, which was rejected by the CoC. The issues at Aviom originated from discrepancies flagged by auditors, leading to an investigation by the National Housing Bank.

(Source：The Economic Times)