The board of Maytas Infra, a firm promoted by Satyam founder chairman B Ramalinga Raju’s kin, has restructured the management of the company by appointing two presidents- CS Bansal and Rajendra Nimje. It has also approved the draft corporate debt restructuring (CDR) package.
The company is now on the look out for a new chief executive officer. According to people in the know, at least two insiders are in the fray for the top post. However, the board is divided in its opinion on insiders taking the top position. Maytas Infra has already formed management committee to ensure that its projects are not affected.
The board, which was chaired by K Ramalingam, analysed the financial position, current order book, cash flow, human resource and other issues related with the restructuring of the company. The company is considering appointment of SBI Capital markets for the purpose.
The Maytas CDR exercise differed from other companies in that it is the government-appointed directors that recommended the move after discussions with lead lenders.
The two-day board meet ended today in Hyderabad. The board reposed confidence in the revival plan and restructuring of Maytas Infra.
Ramalingam also met the Andhra Pradesh chief secretary P Ramakanth Reddy and apprised him of the business plans of Maytas Infra. "The chief secretary assured full support to the company for the various projects being executed by it,'' a statement from Maytas said.
It may be recalled that the company had failed to achieve financial closure in March for the Rs 12,100 crore Hyderabad Metro Rail project and it sought six months time from the government for financial closure. 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 of Maytas Infra for knowing the challenges in executing projects on hands and for getting new projects.
Maytas Infra is a listed company promoted by the family of Satyam Computer founder Ramalinga Raju, who confessed to inflating profits in January this year. 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.