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South African state arms firm at risk of bankruptcy protection, govt says

SOUTH African state arms firm Denel faces the risk of being placed under a local form of bankruptcy protection called business rescue or even liquidation, the National Treasury said on Tuesday.

Denel, which makes military equipment for South Africa’s armed forces and clients around the world, has struggled to pay salaries this year amid a liquidity crisis aggravated by the coronavirus crisis.

National Treasury said in a presentation to parliament that Denel was forecast to have had a negative equity position of 3.3 billion rand ($196.7 million) as of March 2020. – Thomson Reuters Foundartion.

By The African Mirror