Board unveils steps to stabilise Satyam

23 January 2009

Satyam Computer Services Limited today announced key decisions finalised at the third board meeting of the new board. The board meeting reveals that the company has arranged interim financing from bankers and has also shortlisted candidates for the post of CEO and CFO.

This meeting, the third in 13 days since its reconstitution, was chaired by CII's chief mentor Tarun Das. The meeting focused on issues that are a priority for ensuring Satyam's business continuity.

Raising working capital
To tide over the ongoing requirements for operational expenses including salaries and vendor payments, the board also announced that additional funding arrangements are in the final stages of being concluded.

This is expected to be formally announced before 28 January, and will address the company's operational needs till end of March 2009, says board member Deepak Parekh, chairman, HDFC Bank. 

The immovable properties of the company, including all campuses owned by it, are free of any encumbrance. The collections from receivables have been robust, so far. However, taking note of the demanding financial situation, the board discussed with the leadership team, ways and means to expedite the collections due from customers and to also execute prudent measures for cost optimisation.

The board announced that it has narrowed the shortlist for the CEO and CFO positions to the final three, and would finalise its decision, next week.  The board also confirmed that the selected person will be uniquely qualified to lead the company during this period of transition and will be a leader of global standing and recognition.
 
The board also met and interacted with a number of investment bankers and will decide in the next few days on the company's future ownership.