Maytas Infrastructure, the company controlled by the disgraced Raju family at the heart of India’s biggest corporate fraud involving funneling of funds from IT major Satyam Computer Services, is now trying to restructure its corporate debt in an apparent attempt to revive projects jammed by the fallouts of the scandal.
Maytas is in talks with ICICI Bank, IL&FS and the State Bank of India for its debt restructuring exercise approved by its board.
As part of its revival plan, the company, which controversially bagged a project to build Hyderabad’s metro rail project, may also look at selling a stake.
"Our immediate job at hand is to revive the company and a sale of stake cannot be ruled out at some point though we are not considering the option at present,” Ved Jain, a government- appointed director of the company, told reporters on Tuesday.
The promoters led by the Rajus have an 85 per cent holding in the company, which is alleged to be a beneficiary in the Satyam scandal.
The 1,800-employee-strong company has an order-book of Rs 8,500 crore. Though the book has shrunk marginally in the last few months, it was mainly on account of the economic downturn, Jain said.
K Ramalingam, the firm’s new chairman, said all projects were on track and the effort was to ensure that no company withdrew from a. “All the projects are on track including the Machlipatnam and Hyderabad Metro Rail projects,” he said.
But the company has sought an extension in the closure of the metro rail project to sort out pending issues including acquisition of land.
The company is expecting a recovery of Rs 500 crore from its customers, while its outstanding debt is estimated at Rs 1,700 crore.