Maytas Infra board approves draft CDR

SATYAM SCAM AND AFTER

The new board of Maytas Infra Ltd, a firm promoted by Satyam’s disgraced founder-chairman Ramalinga Raju’s kin, has restructured its management by appointing two presidents, CS Bansal and Rajendra Nimje. It has also approved the draft corporate debt restructuring (CDR) package.

The two-day board meet ended today in Hyderabad. It reposed confidence in the revival plan and restructuring of Maytas Infra.

The company is now looking for a new chief executive officer. Sources say at least two insiders are also being considered. However, the board is divided on insiders taking this position. A management committee has already been formed to ensure its projects are not affected.

The board, chaired by K Ramalingam, discussed the financial position, current order book, cash flow, human resource and other issues related with the restructuring. The company is considering appointing SBI Capital markets for the purpose.

The government-appointed directors recommended the move after discussions with lead lenders. Ramalingam also met the state government’s chief secretary, P Ramakanth Reddy, and apprised him of the plans. “The chief secretary assured full support to the company for the various projects being executed by it,” a statement from Maytas said.

The company had failed to achieve financial closure in March for the Rs 12,100 crore Hyderabad Metro Rail project and sought six more months from the government. The board meeting evaluated various projects that are either in different stages of implementation or looking for financial closure. The board also addressed the employees.

Maytas Infrastructure is a listed company promoted by the family of Ramalinga Raju, who confessed to fraudulently inflating profits for years this January. The company was one among two — unlisted Maytas Properties being the other — that Satyam proposed to acquire in December last year. The proposal was dropped after strong shareholder protest, an issue that led to Raju’s confession.