Satyam Chairman and MD Resigns

[ST7677]

Will filing for bankruptcy in US help continuity of the company against the law suites?

[watashi75]

Originally Posted by Jeep

ET reports that Satyam employees will not be given salary for 2 months. If true, this is really sad!

That cannot be true. Salary is part of the contractual agreement and cannot be withheld, as long as the company exists. We should be asking our Satyam members here instead of believing such newspaper reports.

[DKG]

Originally Posted by sridhga

That is easier said than done. Law suits cannot be seperated from the sources of revenue. That is you cannot take away the cream (business) and make law suits on people without business. The very purpose of the law suit is gone in that case. I am not sure bankruptcy judges would allow that.

Agreed. But what if clients and employees leave enmasse? I wouldn't be surprised if the present fiasco would legally enable clients to ease out of their contracts.

The lawsuits at best can be binding on the assets of a company. How can employees or clients be held toward repayment. And if these two shift out how can the law prevent that?

[sridhga]

Originally Posted by ST7677

Will filing for bankruptcy in US help continuity of the company against the law suites?

My point was that judges do not take actions to make the law suits toothless. But if a company files for bankruptcy then all claims including the lawsuits become the subject of bankruptcy judge and he takes a call. Under the US bankruptcy law, a company can file for bankruptcy either volutarily or be forced by creditors. That is called chapter 11 bankruptcy. Forced bankruptcy can be filed in the US courts only if atleast three creditors come together Satyam owes them atleast USD 12000 together. Satyam is an Indian company ie it is registered in India. If it files for voluntary banruptcy in the US, I am not sure that the US banruptcy judge would admit the case. Even if he did, any of his pronouncements need not be enforced by the Indian law enforcement authorities because US bankruptcy judge is not backed by Indian constitution! Moreover US bankruptcy judge would take American creditors and American interests into consideration over Indian interests.

[grvanand]

Being in Audit field, I know for the fact that the methodologies used by PwC are among the best in India, the kind of frauds Mr. Raju has claimed could easily have been identified and qualified, there is definitely more than what the public can see at this moment. There definitely exists more involvement than what has really been claimed, it being a listed public company, things would certainly unfold in the coming days.

[lambuhere1]

Originally Posted by watashi75

That cannot be true. Salary is part of the contractual agreement and cannot be withheld, as long as the company exists. We should be asking our Satyam members here instead of believing such newspaper reports.

Satyam also informed its employees that they will not receive salaries for next two months; company in e-mail message asked its staffers to bear with it.


Ramalinga Raju?s arrest imminent: Reports

[Zappo]

I did not want to butt in but then had to. Times of India is lying and lying through its teeth. Take it as confirmed. They are now cooking up stories guys. Its called Yellow Journalism. No such mail has gone out to all the associates as the site claims.

Also, I can not confirm this but there is a good chance that the news of CFO trying to commit suicide is another lie. He was most possibly seen between 11 and 12 this afternoon at one of the Satyam offices. Multiple Satyam associates seemingly spotted him.

And now some further cheer for Satyam associates. Satyam bagged India Railways' (CRIS) Enterprise Asset Management system order today which is worth 2000 crores. Its a pilot order as of now but if Satyam delivers then they get to implement it across the country for IR.

Sounds good? Satyamites? Cheer up boys.

[kbalii]

Originally Posted by lambuhere1

Satyam also informed its employees that they will not receive salaries for next two months; company in e-mail message asked its staffers to bear with it.


Ramalinga Raju?s arrest imminent: Reports

Guys looks like this is false news, unless this 'email' that is being talked about is sent in specific geographies / employees. I checked with a satyam employee in chennai and she told that there is no mail of that sort.

Lets not scare the people who are already in so much fear. I do not intend to convey that all employees have this fear, but some of them have.

Kudos to the orders to Satyam!!!

The best thing to do right now is to keep talking to the customers and keep those deliveries on schedule. Every employee's effort could make a difference.

[mobike008]

Originally Posted by Zappo

I did not want to butt in but then had to. Times of India is lying and lying through its teeth. Take it as confirmed. They are now cooking up stories guys. Its called Yellow Journalism. No such mail has gone out to all the associates as the site claims.

Also, I can not confirm this but there is a good chance that the news of CFO trying to commit suicide is another lie. He was most possibly seen between 11 and 12 this afternoon at one of the Satyam offices. Multiple Satyam associates seemingly spotted him.

And now some further cheer for Satyam associates. Satyam bagged India Railways' (CRIS) Enterprise Asset Management system order today which is worth 2000 crores. Its a pilot order as of now but if Satyam delivers then they get to implement it across the country for IR.

Sounds good? Satyamites? Cheer up boys.

Agree completely with you on this Deb. Rediff,Times everyone is crapping through their head and it is utter lie that they are spreading. There is a strong possibility that AP Govt is going to provide operational support to Satyam until April'09.

Satyam recently lost a huge order in Japan ( which Satyam won but lost out due to Maytas fiasco and it went to Infy but japanese customer is not happy with how things are going but with Jan 7th confession, Satyam lost out on it for good) but made it up with a much bigger SAP order with Indian Railways. That shows Satyamites fighting spirit.

[DKG]

Originally Posted by Zappo

They are now cooking up stories guys

Doesn't the company have a plan on handling the media in this hour of crisis?

Satyam bagged India Railways' (CRIS) Enterprise Asset Management system order today which is worth 2000 crores

Way to go. Now if only the top rung gets sorted out quickly so the company can return to what it should be good at

[diabloo]

Which Hyderabad? India's of Pakistan's?

“Given our neighbour’s inclination to shelter anyone willing to flee our country on facing the threat of prosecution, it would make complete sense for Raju to head to Pakistan and buy a house in Karachi, where he will be given 5-star treatment along with the likes of Dawood Ibrahim for having done things in India that our government and the people aren’t particulary happy about.”

Ramalinga Raju Flees to Pakistan

Originally Posted by TrueDreamer

From what Raju's advocate has informed to NDTV and also from the Press Meet, Mr. Raju is still in Hyderabad and has never gone out of city and was willing to cooperate.

Media called IT biggies as 'SWITCH'
S - Satyam
W - Wipro
I - Infosys
T - TCS
C - Cognizant
H - HCL


Now that S is gone, it has become 'WITCH'

Originally Posted by gkrishn

IT industry has taken a big "image" hit.

[getsurya]

Zappo & Mobike,

Awesome news!! This is the best I heard till date after the fiasco. Congrats to all Satyamites!! The tide shall turn this side soon!!

[mobike008]

Originally Posted by DKG

Doesn't the company have a plan on handling the media in this hour of crisis?

Don't you agree clarifying the rumours on internet/tv/newspapers which is changing ever hour is for the moment their least priority?

[Digital Vampire]

Congrats Satyamites...I sincerely hope the tide turns for good.

[abk]

Originally Posted by Zappo

And now some further cheer for Satyam associates. Satyam bagged India Railways' (CRIS) Enterprise Asset Management system order today which is worth 2000 crores. Its a pilot order as of now but if Satyam delivers then they get to implement it across the country for IR.

Sounds good? Satyamites? Cheer up boys.

Sorry to be a fly on the ointment but how are new projects being awarded to Satyam after the revelations by the company's chairman? Has most of the corporate world gone bonkers or is it only my head? Must be my head to buy Satyam shares on Wednesday. but then I did not gamble in the last Diwali either

Just to jump into the bandwagon: Folks, lets not get into character assassination here. Any candidate who is made an offer is invariably made in all good will. There are exceptions in the system, everywhere. Today it is Satyam's chairman and probably his cult who have not been brought to light yet. But why o why the public, corporate & govt. ire is not directed at PWC as much as I think should have been? Just a month ago Denmark's much applauded and revered company IT Factory went kaput in a very similar fashion days after it was given a clean chit in the audit by PWC? Lets admit there are bad fishes in the pond just about everywhere (or in a little higher concentration in the US? he he) and one bad fish does not spoil the rest of the pack. Like one gentleman immediately proclaimed in one of the posts on this thread that all Indian managers are bad. Lets hold ourselves back from the temptation of pulling the trigger at the drop of the hat, now that it is our media doing it so swiftly for us! We will only emerge healthier, more competitive and enforce better corporate governance after this tragedy. Though unfortunately the Satyam employees have to bear the brunt and pay more dearly for this transformation. God willing, they will tide the difficult times and emerge stronger and pull up a lot of others with them while walking through the ordeal. There must be some opportunities lurking somewhere veiled by this gloom and darkness.

Amen!