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Restating accounts won't delay sale: Satyam
Mumbai: Bidding for the sale of fraud-hit Satyam Computer could begin before its accounts are restated, with details of the process coming as early as next week, the new company chairman said on Thursday.
The company has been struggling to survive since last month, when its founder Ramalinga Raju quit as chairman, disclosing a massive fraud that included years of overstated profits, leaving the company strapped for cash.
The Chairman, Kiran Karnik, appointed last week, said the board wanted the bidding process to start as soon as possible and it might not wait for the report on the firm's accounts.
"If the recasting takes a long time, which I expect it will, then we will not wait. That's not something which will hold up the process," Karnik said, speaking to reporters outside a meeting of the board to take stock of the issues facing customers and employees.
"It's a work in progress. I can't give any deadline. I can only tell you, this needs to be done quickly," Karnik said.
He said he expected the bidding process to be outlined in the next seven to 10 days and said the board would like to have many suitors contesting in an "open process".
Karnik said the company was financially stable and reiterated it was able to pay salaries, mainly from receivables. It has secured bank loans of Rs 600 crore ($123 million) and Karnik said that money would offer the firm an additional buffer.
"We have ensured financial stability," he said. "This is the first step and a very necessary step, though it's not a sufficient step. We have put out the fire and now we are looking at what we need to do to stabilise the company on an ongoing basis."
details here: http://sify.com/finance/fullstory.php?id=14855739&cid=14832589
Restating accounts won't delay sale: Satyam
Mumbai: Bidding for the sale of fraud-hit Satyam Computer could begin before its accounts are restated, with details of the process coming as early as next week, the new company chairman said on Thursday.
The company has been struggling to survive since last month, when its founder Ramalinga Raju quit as chairman, disclosing a massive fraud that included years of overstated profits, leaving the company strapped for cash.
The Chairman, Kiran Karnik, appointed last week, said the board wanted the bidding process to start as soon as possible and it might not wait for the report on the firm's accounts.
"If the recasting takes a long time, which I expect it will, then we will not wait. That's not something which will hold up the process," Karnik said, speaking to reporters outside a meeting of the board to take stock of the issues facing customers and employees.
"It's a work in progress. I can't give any deadline. I can only tell you, this needs to be done quickly," Karnik said.
He said he expected the bidding process to be outlined in the next seven to 10 days and said the board would like to have many suitors contesting in an "open process".
Karnik said the company was financially stable and reiterated it was able to pay salaries, mainly from receivables. It has secured bank loans of Rs 600 crore ($123 million) and Karnik said that money would offer the firm an additional buffer.
"We have ensured financial stability," he said. "This is the first step and a very necessary step, though it's not a sufficient step. We have put out the fire and now we are looking at what we need to do to stabilise the company on an ongoing basis."
details here: http://sify.com/finance/fullstory.php?id=14855739&cid=14832589
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