Government may bail out Satyam, says Deepak Parekh
12 January 2009
The central government is likely to offer a bail-out package for scandal-hit Satyam Computer Services Ltd as the newly-constituted board works out accelerated recovery of dues from clients amidst probes by government agencies into the fraud at India's fourth-largest software exporter.
A 3-member board comprising HDFC chairman Deepak Pareekh, former NASSCOM chief Kiron Karnik and former SEBI board member C Achuthan to oversee the functioning of Satyam Computers in the interim, also met for the first time to chalk out plans for rescuing Satyam from the rut.
Speaking on the sidelines of the meeting, board member Parekh said Satyam's working capital requirements needed immediate attention and that he expects the government to provide temporary liquidity to Satyam to overcome the crisis. The amount of liquidity required has not yet been determined, he added.
The board has taken up the issue of appointing an independent accounting firm on a prority basis, possibly within the next 48 hours, to restate the financial and announce the Q3 results.
The new board, which is expected to hold a series of meetings over the next few months, said it has faith in the commitment of Satyam officials.
''The associates are definitely of high quality and they have shown tremendous resilience and commitment, amidst all the adversity that they have been subjected to,'' the release said.