Liquidity crunch: Satyam may shut many facilities
The company may not have enough resources to pay lease rentals of most of these premises.
By TNN |
HYDERABAD: Even as the new Satyam board is set to meet for the first time on Monday, eyebrows are being raised in the real estate circles on whether the company would continue to operate so many facilities across Chennai and Hyderabad.
"The liquidity situation is very tight. In fact the interim CEO Ram Mynampati did admit to tight cash position in the company. The new board should find ways and means of lining up credit lines to ensure continuity of operations. In such a scenario, I do not foresee the company operating so many fragmented centres," a senior Satyam official confided.
The problems are many. But, the main focus of the new board is to have a new management team which will take care of day-to-day operations.
"First priority is to build confidence among the employees. They are the brand ambassadors of the company. Simultaneously, address client issues and assure them of continued high class delivery. These two will take care of the third section, which is the investor community," he said.
Clearly the shoe is beginning to bite. With so many centres across Chennai, Vishakapatnam and Hyderabad, there is bound to be rationalisation of operations, going forward.
The company may not have enough resources to pay lease rentals of most of these premises.
It is bound to seek time from the owners and even re-negotiate the terms of lease. In worst case, it might just log out of some of these centres.
"The liquidity situation is very tight. In fact the interim CEO Ram Mynampati did admit to tight cash position in the company. The new board should find ways and means of lining up credit lines to ensure continuity of operations. In such a scenario, I do not foresee the company operating so many fragmented centres," a senior Satyam official confided.
The problems are many. But, the main focus of the new board is to have a new management team which will take care of day-to-day operations.
"First priority is to build confidence among the employees. They are the brand ambassadors of the company. Simultaneously, address client issues and assure them of continued high class delivery. These two will take care of the third section, which is the investor community," he said.
Clearly the shoe is beginning to bite. With so many centres across Chennai, Vishakapatnam and Hyderabad, there is bound to be rationalisation of operations, going forward.
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The company may not have enough resources to pay lease rentals of most of these premises.
It is bound to seek time from the owners and even re-negotiate the terms of lease. In worst case, it might just log out of some of these centres.
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