Satyam board meeting ends inconclusively

The board of scandal-ridden Satyam Computer Services met again on Friday without arriving at a solution to the company's liquidity crisis, or selecting a new management team for the company.

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The board of scandal-ridden Satyam Computer Services met again on Friday without arriving at a solution to the company's liquidity crisis, or selecting a new management team for the company.

It was the third meeting by the government-nominated board of the Indian outsourcer.

Customers want reassurance that Satyam will continue as an operating concern, have enough liquidity, and also be able to retain the employees working on their projects, Siddharth Pai, a partner at outsourcing consultancy firm Technology Partners International (TPI), said.

At the conclusion of the meeting on Friday the board said that funding arrangements are in the final stages, to tide over ongoing requirements for operational expenses, including salaries for staff and vendor payments.

The board said a formal announcement about this is expected by Wednesday, and the new arrangements will address the company's operational needs till end of March. The board also discussed way to speed up collections to raise cash.

The board will name a new CEO and a new chief financial officer next week, it said. For each post, it has narrowed down its choice to three candidates.

A prosecutor told a court in Hyderabad yesterday that Satyam Computer Services had only 40,000 staff, rather than the approximately 53,000 staff the company has claimed.

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