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Next Satyam board meet to discuss funding, legal issues
February 10, 2009 15:28 IST
Satyam [Get Quote] Computer's government-appointed board will meet in Mumbai on Thursday with further funding options and legal issues likely to top its agenda, a high-level source said.
"The Board will meet in Mumbai on February 12 to discuss the company's long-term plans. These include further options to raise funds to meet short- to medium-term requirements," the source, closely connected with the development, told PTI on Tuesday. A Satyam spokesperson confirmed the date of the meeting.
Satyam's short-term requirements include funds for paying salaries to employees in India and abroad, rentals, arrears to vendors and provident fund dues. Satyam has to pay the first tranche of salaries for its US employees by February 19, the source said.
The Hyderabad IT-major has already secured loans worth Rs 600 crore (Rs 6 billion) from IDBI Bank and Bank of Baroda [Get Quote]. It is now understood to have plans to seek more loans from other state-owned banks as well. The company has already initiated discussions with two other banks, the source said, but did not divulge their identities.
Satyam has receivables worth Rs 1,800 crore (Rs 18 billion), which the company is willing to pledge in case of further funding requirements, the source said, and added that the company would be more comfortable if it could tie-up funding for at least Rs 600 crore (Rs 6 billion) more.
"The board would review how much of its receivables have been recovered so far and would accordingly decide its funding options. The board is in talks with more banks to secure funding," the source said.
The board is also expected to discuss legal challenges faced by the company, both here and abroad. Satyam's investors in the US have filed over a dozen law suits against the firm after the scandal surfaced.
The Hyderabad-based IT company, the fourth largest in India, plunged into a grave crisis after its founder-chairman, B Ramalinga Raju, admitted he manipulated the company's accounts to the tune of around Rs 7,800 crore (Rs 78 billion).
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