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Satyam has money for Feb salaries: sources

Satyam has money for Feb salaries: sources

Satyam employees can breathe easy, at least for this month.

New Delhi: Satyam employees can breathe easy, at least for this month. Sources say the scam-hit company has enough money to pay salaries for the month of February.

Sources added that Satyam employees in India will be paid salaries by the month-end while employees abroad will be paid in two installments – one by February 15 and the second by month-end.

The company reportedly has around Rs 1,800 crore as receivables with which it intends to pay its workers. But it is not clear how it would meet other expenses such as insurance, arrears to vendors, dues to provident fund, TDS and rentals.

Meanwhile, the two-day Satyam board meeting beginning on Wednesday will consider six-seven buyout offers made to it and discuss the Rs 600-700 crore short-term funding requirements to be provided by three public sector banks.

Though Satyam has received proposals from both domestic and foreign players, the board may give preference to a local entity.

Satyam's land bank is worth Rs 1,500-1,700-crore and hence it would not be difficult to secure Rs 600-700 crore loan pledging this property, the source said.

The IT-giant already has a long-standing relationship with the global banking major, Citibank.

first published:February 03, 2009, 21:48 IST