SAAB Grintek Defense has approached the court to have Denel liquidated.
State arms manufacturer Denel reached an out-of-court settlement with SAAB Grintek Defense, saving it from the brink of liquidation.
Denel said in a market update Thursday that he had reached an out-of-court settlement with the South African branch of the Swedish aerospace and defense company.
The settlement agreement resulted in the expungement of SAAB Grintek Defense’s legal action to liquidate Denel in the North Gauteng High Court in Pretoria.
At the heart of SAAB Grintek Defense’s complaint with the Denel was that it had failed to repay its debts to the aerospace and defense company. The two companies were scheduled to appear in court on October 11 for the hearing.
Denel grapples with financial issues and corruption allegations that took center stage during the state capture investigation. He also struggled to pay staff salaries due to his financial problems.
We live in a world where fact and fiction collide
In uncertain times, you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analysis, investigative journalism, leading opinions, and a range of features. Journalism strengthens democracy. Invest in the future today.