JOHANNESBURG, June 9 – Embattled state-owned arms manufacturer Denel said on Friday that it has been granted an extension to repay its unsecured debt that was due on Sunday June 10.
The extension is on a R290 million debt note that was taken up in June 2013 and R400 million debt note in November 2015, and will be a welcome relief to the company as it resolves its current financial challenges.
The extension of the term of the note, is part of an overall debt restructuring programme, to allow the company to restructure its balance sheet and engage critical stakeholders around its turnaround.
Denel said that its board spent the past weeks supporting the new acting group chief executive, Michael Kgobe and his management team review the existing corporate plan by scrutinising the profit and loss position of each division, so that the company can start on a cost effective and sustainable growth trajectory.
Denel chairman, Monhla Hlahla, said in a statement that they were obviously very pleased with the debt extension.
“We are however not out of the underlying difficulties yet. The company and every Division has begun the tough journey to review how they can contribute positively to the turnaround journey that we have started,” Hlahla said
“With the right focus and leadership, Denel can return to its role as a positive and key contributor to the defence and security of South Africa.” ANA