Satyam Ex-CEO's Spending Still Haunts VAR

The India-based integrator appointed a 15-year veteran of the organization, A.S. Murthy, as chief executive officer. In a statement, Murthy said the company's immediate priority is to come up with 30-, 60- and 90-day plans that encompass and address the interests of all the company's stakeholders.

Raju was arrested in January, after he issued a resignation letter in which he admitted to lying about Satyam's financial situation. He's also accused of siphoning off thousands of dollars each month in the name of nonexistent workers. In response, Satyam has retained lawyers, selected a new CEO and weathered stories about Raju's lavish spending habits.

Wachtell, Lipton, Rosen & Katz will defend Satyam against class-action suits in the United States. Two firms, Izard Nobel LLP and Vianale & Vianale LLP, have filed such suits against Satyam on behalf of shareholders of the firm's American Depository Receipts. (The stock of many non-U.S. companies trades on U.S. exchanges through the use of ADRs.)

Additionally, Latham & Watkins, a firm that has worked with Satyam for more than eight years, will continue its dialogue with the U.S. Securities and Exchange Commission on the company's behalf.

According to The Telegraph in the U.K., Raju owned 1,000 designer suits, 321 pairs of shoes and 310 belts, as well as a garage with 13 cars, including Mercedes and BMWs.

The company is left to struggle not only with the financial repercussions, which are great, but also the public relations issues. Satyam has secured approximately $130 million in financing, which will go to working capital requirements.

The loan, along with healthy collections, will help the company manage several short-term financial challenges. The company has confirmed it has met its payroll obligations and in the next few weeks will announce third-quarter results.