Satyam appoints AS Murty as CEO; gets Rs600 cr funds

Satyam appoints AS Murty as CEO; gets Rs600 cr funds
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First Published: Thu, Feb 05 2009. 07 09 PM IST
Updated: Thu, Feb 05 2009. 07 09 PM IST
Bangalore: The new board of India’s fraud-hit Satyam Computer Services said on Thursday it has appointed a senior company executive as chief executive as it battles to revive the outsourcing company.
AS Murty, a Satyam executive for 15 years, will be the chief executive of the company with immediate effect, Satyam said in a statement after a two-day board meeting in Hyderabad.
Also Read The Satyam Fiasco (Full coverage)
The IT company also named Homi Khusrokhan, a former managing director of Tata Chemicals Ltd., and Partho Datta as special advisors to the board.
Satyam said the company had also received bank sanctions for Rs600 crore towards working capital requirements.
Satyam said Rs 600 crore fresh funds sanctioned by banks, along with healthy collections, is expected to help tide over the company’s financial challenges.
The company said that the special advisers, along with Boston Consulting Group, would assist the new CEO and the board in defining priorities and their execution.
The board termed the decisions as aimed at “quickly stabilising” Satyam, which is smarting from a massive accounting fraud disclosed by Raju in January.
A team of market regulator SEBI is questioning the Raju brothers, with emphasis on insider trading as Satyam’s stock prices could have been influenced by falsified profits.
Satyam also appointed Wachtell, Lipton, Rozen and Katz as its lawyers to address class-action lawsuits in the US and also said that its existing lawyers Latham & Watkins would continue to support it in its dialogue with the US market regulator SEC.
The company also reaffirmed that January worldwide salaries and the fortnightly salary in February (for its US-based associates) have been met from internal accruals.
The board also reiterated its focus on retaining customers and associates, evaluating long-term strategic options, assessing legal liabilities, undertaking cost rationalisation measures and resuming investment in identified areas
Satyam has been battling for survival since Ramalinga Raju resigned as chairman on 7 January, revealing profits had been overstated for years and that $1 billion of cash and bank balances on the company’s books did not exist.
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First Published: Thu, Feb 05 2009. 07 09 PM IST
More Topics: Satyam | CEO | AS Murty | Executive | Board Meeting |