NEWS & ADVICE : CAR LOANS
Tech Mahindra to prepay Rs 300-crore Satyam loan
By Vaibhav Aggarwal
Jun 5, 2009
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The Satyam board of directors has approved the prepayment of Rs 300-crore loan, the company took in February-09, a month before Tech Mahindra took a 31 percent stake in the company.

The loans repayment amount will be drawn form the money received by the scam-hit Satyam from Tech Mahindra.

In April, Tech Mahindra won the bid for Satyam acquiring 31 percent stake in the company. Later the company infused Rs 1,756 crore by subscribing to a preferential issue of 30.27 crore shares (at Rs 58 per share) in the company.

The beleaguered, Hyderabad based, IT major Satyam Computer was sanctioned one-year loan for Rs 600 crore, at a 13.5 percent interest rates by IDBI, Bank of Baroda and LIC. The short-term loan was pledged against a part of bank's land in Hyderabad, with an estimated value between Rs 1,500-Rs 1,700-crores.

The loan was meant to meet the short-term obligations and expenses of the company like salary payments, office rentals; etc. "The cash flow situation has improved as the company has been able to recover some of its dues," a board member said, commenting on the decision taken.

On January 7, 2009, the founder and chairman, B Ramalinga Raju, resigned; after publicly announcing his involvement in an accounting fraud amounting to Rs 7,000-crore. Following this, a government-appointed board took over the task of rescuing the company, headed by Kiran Karnik, the former president of NASSCOM.

 


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