Troubled Satyam has appointed company veteran A.S. Murty as its new CEO to help leave scandal behind.
"Extensive board discussions over the past few weeks made it clear that the new CEO should come from within," said Satyam board member Deepak Parekh. "ASM, an extraordinary executive with widespread support among all stakeholders – internal and external – will do an exceptional job leading Satyam at this critical juncture.”
The board also appointed Homi Khusrokhan, the former managing director of Tata Chemicals; and Partho Datta, the former finance director of the Murugappa Group, as special advisors. They, along with Boston Consulting Group, will work pro bono and help Murty and the board define and executive key strategies.
Former Satyam chairman B. Ramalinga Raju, and his brother, were arrested last month on fraud charges, including forgery, breach of trust and criminal conspiracy to the tune of $1 billion. The rest of the board’s directors were fired and replaced.
Meantime, the board confirmed it has secured approximately $130 million in financing, which will be directed toward working capital requirements. The loan, along with healthy collections, will help the company manage several short-term financial challenges.
Satyam is a global consulting and information technology services provider.
