The Johannesburg Stock Exchange (JSE) has suspended state-owned defence company Denel's bonds after it failed to submit financial results within the required timeframe.
The suspension means investors cannot trade Denel's bonds on the JSE's secondary market nor can Denel sell more debt on the primary market.
The firm was once the cornerstone of the local defence industry but has suffered severe liquidity constraints that have hurt its ability to deliver on orders. It was allocated another government bailout in November to help it repay debt. Denel is yet to publish its results for the year ended March 2021. Its results for the year ended March 2020 were also delayed and showed an almost 2 billion rand loss.
In prior years South African state-owned asset manager the Public Investment Corporation held a large amount of Denel's listed debt. Reuters submitted questions to the PIC, which said it was working on a response.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JSE suspends Denel’s bonds as it battles with financial reportsDenel has not released its results for its 2021 year, breaching a requirement to release annual statements within seven months of financial year-end
Read more »
Govt committed to rebuilding arms maker Denel, says GordhanPublic Enterprises Minister Pravin Gordhan says government is committed to rebuilding Denel, the cash-strapped arms manufacturer that’s missed payments on its loans. MoneywebNews ZondoReport
Read more »
Corrupt practices brought Denel to its knees – Zondo reportDenel was steadily improving its financial position, then the Gupta capture project began. It was downhill from there. Moneyweb statecapture Zondo
Read more »
How the once well-oiled machine that was Denel was hacked apart | CitypressThe second volume of the state capture report noted that Denel was performing well between 2011 and 2015. The enterprise achieved 88% of its targets in the 2014/15 financial year, but things went haywire when a new board took over.
Read more »
Khumbudzo Ntshavheni in Zondo's firing line over Denel dismissalsMinister of communications and digital technologies Khumbudzo Ntshavheni may find herself among the former Denel board members to be investigated and charged
Read more »