The new board inherited a mess. Bank balances were bad. The whole process took three months—which many stalwarts in India Inc feel is a record of sorts at a time when many public and private sector companies are waiting for decades for a rehabilitation plan. But the three months had several anxious moments. For example, it seemed difficult to raise the Rs 600 crore needed to pay the January salaries to employees. The board did not run to the government for a bailout; it identified land that can be used as collateral for raising funds at commercial rates from a bank. But a large tract of land given to the company by the Andhra Pradesh government had a clause stating Satyam had to provide employment to 6,000 people by 2012. The bank, taking abundant precaution, asked the board to get a no objection certificate from the state. “Andhra Pradesh either got jittery or was deliberately dragging its feet … so some crucial days were lost. But, finally, it gave the NOC,” said a board member.

After arranging the funds, two advisers, former Tata Chemicals MD Homi Khusrokhan and former Murugappa Finance director Partho Datta, were appointed to assist the board. Lawyers from Amarchand Mangaldas went through the legal aspects of each move. Retired justice S.P. Bharucha was roped in to monitor the bidding process. The six new directors met week after week in Hyderabad, Mumbai and Delhi to finalise the sale process. Tarun Das, with his phenomenal clout in the government, helped move files quickly.

... contd.