Mumbai, a bustling metropolis and the financial capital of India, is witnessing significant developments in the housing finance sector. Aviom India Housing Finance, currently navigating insolvency proceedings initiated by the Reserve Bank of India (RBI), has had its promoter, Kajal Ilmi, submit a substantial settlement proposal to its lenders. This proposal aims to resolve Rs 1,385 crore in dues over a period of 26 months, including the payment of accrued interest.
In her proposal, Ilmi has outlined an upfront payment of Rs 350 crore, with plans to clear the remaining dues over the next two years. Notably, the proposal also includes commitments to fully repay operational creditors and employees, which amounts to Rs 2.9 crore. Additionally, Ilmi has suggested the appointment of a professional CEO to oversee the company's operations during the repayment phase, along with the induction of five directors, two of whom would be nominated by the lenders. This structured approach is aimed at demonstrating her commitment to restoring the company’s financial health.
However, the proposal faces skepticism from the creditors. Industry insiders have expressed doubts about its acceptance, citing allegations against Ilmi for siphoning funds, which were corroborated by a forensic audit commissioned by the lenders. An official familiar with the situation remarked that it is unlikely the Committee of Creditors will approve her settlement offer, given the serious nature of the allegations that could hinder her from clearing the fit-and-proper criteria necessary for leadership within the company.
Despite the challenges, Ilmi remains optimistic about the future of Aviom. In a statement to *ET*, she asserted that the company's prospects are robust, especially if her settlement proposal is accepted without necessitating any concessions from lenders. As the situation unfolds, it will be interesting to see how the lenders respond and whether Aviom can navigate this tumultuous period successfully.
As reported earlier, Unity Small Finance Bank has positioned itself as a leading contender to acquire Aviom, proposing an upfront payment of Rs 775 crore. Other interested parties include Authum Investment and others, signaling a competitive landscape for Aviom amidst its restructuring efforts. The coming weeks will be pivotal in determining the fate of Aviom India Housing Finance and its stakeholders.
