5 Feb :Taking two important key decisions towards a revival path, Scam-hit Satyam Computer Services has appointed A S Murthy as the CEO and said it has received bank sanction for Rs 600 crore for meeting working capital requirements.
"A S Murty has been appointed as Satyam’s Chief Executive Officer with immediate effect," Member of the Board Deepak Parekh said in a statement on Thursday.Besides, the board on Thursday confirmed receiving bank sanctions for a total sum of Rs 600 crore (USD 130 million) as a planned fund infusion towards working capital requirements.
This funding, along with healthy collections, is expected to help the company tide over its financial challenges.Satyam also reaffirmed that 9th January salaries (globally) and the fortnightly salary in 9th February (for its US-based associates) have been met from its internal accruals.
"US payroll is run fortnightly for US based associates and has been so since company’s inception," he said.The Board also announced the appointment of Homi Khusrokhan and Partho Datta as Special Advisors to the Board, to assist in Management and Finance areas, respectively.
The Special Advisors, along with Boston Consulting Group, will work pro bono and will assist the newly-named CEO and the Board, in defining priorities and executing them, effectively.
Satyam’s full board met over two days, along with their Advisors. This was the fifth meeting of the Board in less than a month, chaired by C Achuthan, former Presiding Officer of Securities Appellate Tribunal and Member of the Board.
Murthy is a Satyam veteran with 15 years’ standing in the trade, bringing to play a deep understanding of the organisation, coupled with proven expertise in leading a business unit.
"In our interactions over the past few weeks, we are convinced that Satyam needs an internal leader to steer it at this critical juncture and ASM has the required bandwidth and support," Parekh said.