The rescue plan for state-owned South African defence manufacturer Denel will lead to “long-term sustainability”, CEO Danie du Toit insisted on 26 June.
His comments came a day after Denel revealed that a “liquidity crisis” means staff will only receive 85% of their June pay. However, Public Enterprises Minister Pravin Gordhan later told Parliament that a lender has come forward to extend funds for the remaining 15%.
“I am confident that [by] working together towards the long-term resolution of the current challenges we will ensure the long-term sustainability of our business,” du Toit said, adding that efforts are underway to strengthen market access, develop technology, enhance internal governance, and improve programme management.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at ihsmarkit.com/janes