Denel seeking to negotiate with Saab Grintek Defence over liquidation application
Financially-embattled State-owned defence industrial group Denel issued, on Tuesday, a short statement regarding the threat of court action against it, aimed at forcing its liquidation. This action has been initiated in the High Court in Pretoria by private-sector South African defence company Saab Grintek Defence, because of Denel’s failure to pay its debts.
“Noteholders are referred to various press articles relating to an application by Saab Grintek Defence for the liquidation of the Company,” said Denel in its statement, released on the JSE’s Stock Exchange News Service. “In this regard, noteholders are advised that Denel is currently engaging with Saab Grintek Defence to reach an amicable outcome, and if need be, will engage its legal advisors to defend this matter.”
On Monday, the trade union Uasa highlighted that Denel currently owed its employees R500-million in unpaid wages. For about a year now, Denel employees had not been receiving their full salaries, because of the group’s financial crisis. “The liquidation bid from Saab Grintek Defence, although warranted in terms of current liquidity struggles suffered by Denel, could have been avoided had the State intervened in time as pleaded,” stated the union on Monday. “Uasa is aware of other creditors also demanding long outstanding payments from Denel.”
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