The Board and Management of Denel SOC, confirmed that the company has been granted an extension to repay its unsecured debt that was due on 10 June 2018.
The extension is on a ZAR290 million debt note that was taken up in June 2013 and ZAR400 million debt note in November 2015 and is a welcome relief to the company as it resolves its current 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.
The Denel Board of Directors spent the past weeks supporting the new acting Group Chief Executive Officer, 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.
Following the appointment of Minister Pravin Gordhan as Minister at DPE in February, the company has seen a number of key changes, starting with a new Board and a new acting Chief Executive.
The changes taking place in the company have been positively welcomed by employees and the public including critical stakeholders; and have been viewed as a step in the right direction towards refocusing the company on its mandate.
“We are 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. 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,” says Monhla Hlahla, Chairman of the Denel Board of Directors.