Denel said it has informed its employees that it was "at risk of not being in a position to pay salaries for the month of July on time". Denel group CEO Danie du Toit said through the statement the company was in "constant engagements with banks to secure bridging finance to support the company".
Denel also said its inability to pay was related to its liquidity problems at the company. It warned that the next few months would be touch and go.
Whilst Denel was confident that it would soon be recapitalised,it should be expected that the next few months would be very tough however it was important to note that the implementation of the turnaround plan was in full stream.