SAAB Grintek Defence approached the court to have Denel liquidated.
State-owned arms manufacturer Denel has reached a settlement agreement with SAAB Grintek Defence, saving it from the brink of liquidation.
Denel said in a market update on Thursday that it had reached an out-of-court settlement agreement with the South African subsidiary of Swedish aerospace and defence company.
The settlement agreement has resulted in SAAB Grintek Defence’s court application to have Denel liquidated being struck off the roll at the North Gauteng High Court in Pretoria.
At the heart of SAAB Grintek Defence’s gripe with the Denel was that it had failed to repay its debts to the aerospace and defence company. Both companies were meant to appear before the court on 11 October for the hearing.
Denel has been battling with financial issues and allegations of corruption that have taken centre stage at the State Capture Inquiry. It has also struggled to pay staff salaries due to its financial woes.
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