LONDON, Dec 18, 2008 (BUSINESS WIRE) -- Online and mobile payment services leader, Upaid Systems, announced it is filing today a motion in Collin County, Texas district court requesting depositions of Satyam Computer Services' Chairman, Chief Financial Officer and Global Head of Corporate Governance in connection with the attempt earlier this week to strip all surplus cash from the company in a $1.6 billion related-party transaction benefiting the family of Satyam's founder and Chairman.
Satyam is facing suits in U.S. Federal and State Courts filed by Upaid claiming fraud, forgery and breach of contract, as a result of which Upaid has suffered damages to its business and prospects in excess of $1 billion. The Federal Court proceeding is currently scheduled for a Texas jury trial in June of 2009, and Satyam is facing the potential of a very sizable judgment against it. At present, Satyam has cash resources to pay a $1 billion plus judgment or the liquidity to support a supersedeas bond. However, on December 16, 2008, Satyam announced a plan to strip $1.6 billion of cash out of the company, an amount that exceeds its cash, in a transaction to acquire Maytas Properties and Maytas Infra, whereby the large majority of this cash would go to the family of Satyam's Chairman, Ramalinga Raju. That Satyam would proceed with a transaction that seems so clearly designed to deplete its assets in advance of a judgment, rightfully concerns Upaid that Satyam may be willing to engage in fraudulent transfers to avoid its legal obligations.
Satyam has put its reputation in the business community squarely at issue in court proceedings it has filed against Upaid. The Satyam executives whose depositions are being requested, Ramalinga Raju, (Chairman) Srivinas Valdamani (CFO) and G. Jayaraman, (Global Head - Corporate Governance) are in the best positions to know Satyam's reputation in the business community and the events that have drawn such widespread criticism in the marketplace as underscored by recent news reports. The evidence of Satyam's poor corporate governance and business practices has been mounting, harming Upaid, other customers and now Satyam's shareholders. The Maytas transactions further damaged Satyam's reputation, sparking widely-reported outrage among Satyam's shareholders and a fire sale on Satyam's stock that resulted in a 55 percent one-day decline in the company's market value.
For a copy of the Motion to take Depositions, please contact Skywrite.
About Upaid
Upaid is the mobile and online payments specialist. Applications range from the recharge of prepaid accounts via SMS, to electronic bill payment and presentment, to billing for mobile content. The Upaid platform supports a complete eco-system for mobile commerce, giving users the choice of an operator-driven or independent billing system.
Upaid holds a portfolio of over 1,000 granted patents in the arena of e- and m-commerce. We work with Brazil's leading mobile operators and banks to enable recharge transactions, serving a user base of over 50 million consumers, processing 2 million transactions per month. Upaid holds the franchise for VISA Mobile Service in the CEMEA region. Upaid has offices in the US, UK, and Brazil. Upaid is a registered trademark of Upaid Systems, Ltd.
For more information, please visit www.upaid.net.
SOURCE: Upaid
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