Tech Mahindra plans to repay Satyam's Rs 3 bn loan

Posted By: Staff
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Mumbai, Jun 4: According to an Economic Times report, the new owner Satyam Computers, Tech Mahindra plans to repay 3-billion-rupee loan it had raised from state-run banks in Feb 2009.

Repayment the loans is all set to happen earlier than expected and would be repaid from the proceeds of the share issue to new owner Tech Mahindra, the newspaper reported on Thursday, Jun 4.

The fraud-hit company saw a government-appointed board which raised the loan from Bank of Baroda and IDBI Bank to meet short-term requirements of the company.

"The cash flow situation has improved as the company has been able to recover some of its dues," a source was quoted as saying. The board of directors has reportedly approved the early repayment of the loans.

Satyam computers was won over by Tech Mahindra in an aution in Apr 2009 at the price of 580 million dollars.

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