The company rejects minority shareholders’ claims, and will oppose business rescue application in relation to LMT Holdings.
Denel wishes to respond to the adverse reporting, which was carried by certain publications today.
Denel categorically denies it is captured by the Gupta family.
The alleged work or contract which Stefan Nell is alleging was given to VR Laser, a company associated to the Gupta family, at the expense of LMT, in his own version such alleged activities took place before the appointment of the current minister, board and the acting executives.
The then executive directors of Denel, who were board members of LMT at the material times, as alleged by Nell as having acted in violation fiduciary duties, are no longer at Denel employ or have been suspended.
Denel is opposing Nell’s business rescue application, because there are no grounds for such in law; Denel has been single-handedly loaning money to LMT to fund its operations despite the obstructionist conduct of Nell. Nell alleges he has investors who are prepared to invest vast amounts of monies in the business, yet he does not want to disclose such persons. Denel is aware that a certain politician is attempting to loot Denel shares at LMT; the attempts by the said politician to hijack Denel shares using business rescue proceedings via Nell will be vigorously opposed and will not succeed.
LMT is a 51% Denel-owned company that receives support from the company similar to all the other Denel-owned businesses, which include:
* Share-holder loans;
* Business origination where Denel has been instrumental in getting LMT work from other clients;
* Deployment of experienced human resources to support and strengthen the business;
* When challenges were picked up in the management of the company. At LMT, Denel provided a more experienced chief executive, seconded from the Denel head office to LMT, while retaining the former CEO and shareholder in a chief operations officer capacity;
* Intervention in cases of poor workmanship;
* Procurement of preferable contract terms where this was necessary; and
* Assistance in managing commitments to creditors.