Denel is engaging with Saab Grintek Defence to reach an ‘amicable outcome’ regarding its bid to have Denel put into liquidation over unpaid debts, the company has said.
In a brief notice to the Johannesburg Stock Exchange on 8 June titled ‘clarification on liquidation bid’, Denel said “noteholders are referred to various press articles relating to an application by SAAB Grintek Defence for the liquidation of the Company. 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.”
Over the weekend it emerged that Saab Grintek Defence was seeking to have Denel liquidated over a failed contract to supply 211 fire control computers for the SA Army’s Badger infantry fighting vehicles, being built by Denel Land Systems.
Denel owes creditors and suppliers hundreds of millions of Rands. According to trade union UASA, Denel also owes its staff R500 million in unpaid wages.