01-15-2009, 01:50 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Bailout set to be a rough ride</b>
pioneer.com
Santanu Banerjee | New Delhi
<b>Salvage-Satyam package only on temporary basis</b>
Even as the Government is contemplating a bailout package for the fraud-tainted Satyam, official sources said that anything done to salvage the situation would purely be on a â<b>temporary basisâ and that the Government would not have any long-term commitment on the issue.</b>
Sources told The Pioneer that the Government was awaiting the outcome of the investigation on the exact status of Satyamâs financial health, which would decide the extent of its involvement in rescuing the beleaguered company.
<b>The first installment of the bailout package may be decided soon after the Government received a proposal to this effect from the new three-member board, which was put in place on Sunday. âWe are expecting that the board would send the necessary feedback within the next few day</b>s,â a top Government official said.
Elaborating what could be part of the salvage package, he hinted that the <b>Government was studying the crisis-salvage models prevalent in the United Kingdom and the United States and could start with extending soft loans to Satyam and acquiring preferential shares.</b>
The official added that the Government could consider either option, but it would be a purely temporary involvement and carried out with purely social objectives like salvaging the loss of jobs and ensure operational viability.
Insiders said the reasons why the Government did not seek any long-term association with the <b>crisis-ridden firm was the huge salary bill per month it would need to pay the employees.</b>
The Government also does not want to enter into a long-term commitment with the company as it is war of the political spins of the scam. I<b>t also apprehends that spending the tax-payerâs money to save a tainted firm may not go down well with the electorate.</b>
Incidentally, if the Government decides to buy the preferential shares, it would send a strong signal to the market that authorities are trying to give a stamp of official guarantee to the stock holders.
However, sources said that the Government was not contemplating attaching the properties of Satyam's group companies to recover the financial losses. âAt no point are we contemplating this issue,â sources said.
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If they are studying what US is doing now, expect doom for Indian Govt and IT.
In US they have chapter 11 and Chapter 7, Chapter 9 to give chance to fix but for scam they allow company to collapse as happened with BearStrean or Lehman Bro or Enron. In US investigation is very honest and it means end of life for lot of people, that is why lot of executive prefer to commit suicide then face court and investigation.
In India, these guys happy to sit in jail in luxory but they know they can get away. Greasing Babus and politicians can solve anything.
Can someone tell me outcome of Volcker where Sonia was involved doing business with Saddam Hussein when Iraq was under sancations, Bofors, Lalu fodder scam, Mulayam Yadav bank balance, Amar Singh..... Mayawati ....
Till Sonia is in lead CBI etc will toe whatever 10 Janpath will tell them to do.
I think common Indian citizens who may tax will end up paying bills for bailout of Satyam, to protect Congress and Babus interest.
pioneer.com
Santanu Banerjee | New Delhi
<b>Salvage-Satyam package only on temporary basis</b>
Even as the Government is contemplating a bailout package for the fraud-tainted Satyam, official sources said that anything done to salvage the situation would purely be on a â<b>temporary basisâ and that the Government would not have any long-term commitment on the issue.</b>
Sources told The Pioneer that the Government was awaiting the outcome of the investigation on the exact status of Satyamâs financial health, which would decide the extent of its involvement in rescuing the beleaguered company.
<b>The first installment of the bailout package may be decided soon after the Government received a proposal to this effect from the new three-member board, which was put in place on Sunday. âWe are expecting that the board would send the necessary feedback within the next few day</b>s,â a top Government official said.
Elaborating what could be part of the salvage package, he hinted that the <b>Government was studying the crisis-salvage models prevalent in the United Kingdom and the United States and could start with extending soft loans to Satyam and acquiring preferential shares.</b>
The official added that the Government could consider either option, but it would be a purely temporary involvement and carried out with purely social objectives like salvaging the loss of jobs and ensure operational viability.
Insiders said the reasons why the Government did not seek any long-term association with the <b>crisis-ridden firm was the huge salary bill per month it would need to pay the employees.</b>
The Government also does not want to enter into a long-term commitment with the company as it is war of the political spins of the scam. I<b>t also apprehends that spending the tax-payerâs money to save a tainted firm may not go down well with the electorate.</b>
Incidentally, if the Government decides to buy the preferential shares, it would send a strong signal to the market that authorities are trying to give a stamp of official guarantee to the stock holders.
However, sources said that the Government was not contemplating attaching the properties of Satyam's group companies to recover the financial losses. âAt no point are we contemplating this issue,â sources said.
<!--QuoteEnd--><!--QuoteEEnd-->
If they are studying what US is doing now, expect doom for Indian Govt and IT.
In US they have chapter 11 and Chapter 7, Chapter 9 to give chance to fix but for scam they allow company to collapse as happened with BearStrean or Lehman Bro or Enron. In US investigation is very honest and it means end of life for lot of people, that is why lot of executive prefer to commit suicide then face court and investigation.
In India, these guys happy to sit in jail in luxory but they know they can get away. Greasing Babus and politicians can solve anything.
Can someone tell me outcome of Volcker where Sonia was involved doing business with Saddam Hussein when Iraq was under sancations, Bofors, Lalu fodder scam, Mulayam Yadav bank balance, Amar Singh..... Mayawati ....
Till Sonia is in lead CBI etc will toe whatever 10 Janpath will tell them to do.
I think common Indian citizens who may tax will end up paying bills for bailout of Satyam, to protect Congress and Babus interest.