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Land mortgaged to raise Rs 600 cr
Satyam Computers has managed to secure loans worth Rs 600 crore to pay salaries to its 53,000 employees besides meeting its immediate working capital requirements, but procedural bottlenecks are blocking the disbursal of funds, report Anupama Airy & Gaurav Choudhury.
Satyam Computers has managed to secure loans worth Rs 600 crore to pay salaries to its 53,000 employees besides meeting its immediate working capital requirements, but procedural bottlenecks are blocking the disbursal of funds.
The new board of the company is also in discussions with government-owned institutions including Life Insurance Corporation (LIC) and State Bank of India to secure additional working capital loan after pledging the company’s property and real estate assets, officials told Hindustan Times on the condition of anonymity.
The disbursal of these loans, however, is getting delayed as the Andhra Pradesh government is yet to give the mandatory no-objection certificate (NoC) for pledging the property.
The most pressing concern facing the board is the immediate requirement of Rs 400-500 crore per month to pay salaries to the employees and to pay other dues incurred in the running of the company.
The board of Satyam has already obtained sanctions of loans of Rs 300 crore each from IDBI and Bank of Baroda. More loans are required to ensure that salaries for the next few months, till a strategic investor acquires significant stake in the company.
“The corporate affairs ministry has sought appropriate intervention to immediately seek a no-objection certificate (NOC) from the government of Andhra Pradesh to enable release of loans against the property owned by Satyam in Hyderabad,” the official said.
“Satyam owns considerable unencumbered property in Hyderabad, which can be used for securing loans,” a corporate affairs ministry note stated. “However, the property in question is situated on land purchased by Sayam from the state government.”
“The state government may be asked to immediately provide the requisite NOC to the company,” the note said.
