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South Africa’s Denel reports delayed results showing $130 mln loss

South Africa’s Denel reports delayed results showing $130 mln loss

SOUTH African state-owned defence company Denel made a 1.96 billion rand ($130 million) loss in the year to the end of March 2020, it said on Monday, releasing delayed financial results. The Johannesburg bourse had threatened to suspend the listing of Denel’s bonds if the arms manufacturer did not publish its results by the end of January. Interim CEO Talib Sadik The latest loss compares to a revised loss of 1.47 billion rand in the 2018/19 financial year, underlining its continued fragility. Interim CEO Talib Sadik attributed the larger loss in 2019/20 to “a delay in sales, an inefficient cost…
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S.Africa’s Denel seeks $231 million state support

S.Africa’s Denel seeks $231 million state support

SOUTH African state defence company Denel has asked for 3.8 billion rand ($231 million) in state financial support over the next three fiscal years, the National Treasury told Reuters on Friday. Denel, which makes military equipment for South Africa’s armed forces and export, has struggled to pay salaries this year amid a liquidity crisis aggravated by the coronavirus crisis. “Denel has requested a 3.8 billion rand bid over the 2021/22 to 2023/24 MTEF (Medium Term Expenditure Framework) period,” the National Treasury said in an emailed response to questions. A Denel spokeswoman was not able to immediately comment. State firms have…
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South African state arms firm at risk of bankruptcy protection, govt says

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.
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South Africa’s Denel ordered to pay outstanding salaries by Friday

South Africa’s Denel ordered to pay outstanding salaries by Friday

ALEXANDER WINNING SOUTH  Africa's Labour Court on Tuesday ordered state defence firm Denel to pay workers outstanding salaries for May, June and July by Friday, Aug. 7, a copy of the court judgment showed. The case against Denel was brought by two trade unions, Solidarity and UASA, on behalf of their members after the weapons manufacturer did not pay salaries in full. Denel, which makes equipment ranging from armoured vehicles to missiles, has struggled to pay staff salaries amid a liquidity crisis aggravated by the COVID-19 pandemic. It is one of a number of struggling state enterprises the government has…
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