Satyam agreed to buy the business from Caterpillar in April last year for $60m, but has so far only paid $20m.

The firm’s founder and former chairman B Ramalinga Raju admitted to a $1bn fraud in January, and the firm is now struggling to resolve disputes over four foreign acquisitions, according to a statement quoted in the Indian business press.

Following news of the fraud in January, Caterpillar served legal notice on Satyam demanding the immediate payment of the remaining $40m due under a promissory note.

Satyam said today: “In March 2009, the parties began negotiating to amicably resolve the outstanding issues and the settlement negotiations are at an advanced stage.”