Debtors may target Satyam’s campuses

As debtors close in, several plush campuses or buildings owned by disgraced Satyam Computer Services Limited peppered across eight cities in India could come under a threat as banks consider options to recover outstanding loans, reports Mahua Venkatesh.

As debtors close in, several plush campuses or buildings owned by disgraced Satyam Computer Services Limited peppered across eight cities in India could come under a threat as banks consider options to recover outstanding loans.

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According to it’s balance sheet, the outstanding borrowings of Satyam Computer Services stood at Rs 1,464 crore as on March 31, 2008, though they could be balanced against receivables.

The Reserve Bank of India has sought details of credit given out by these banks to the beleaguered company, banking sources said.

Banking sources, who did not wish to be identified, said creditors would consider invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act that allows lenders to recover their non-performing assets without the intervention of a court.

Legal expert Manoj Kumar told Hindustan Times that Satyam would have to first default in repayment to allow banks to bring SARFAESI into effect. An asset is considered non-performing only if there is no interest payment for a 90-day period.

However, it will take at least five to six months more before it has a real impact.

When contacted, BNP Paribas spokesperson refused to comment on the issue.

Bank of Baroda Executive Director V Santhana Raman said there was nothing to worry at this point. “It is unlikely to impact us,” he said. “It will take a few months before the process can be kickstarted. Banks would not be able to act before that, even if the writing on the wall is clear and until now it has not defaulted,” Kumar said.