Satellite manufacturer Sunspace accepts R55m ($5.4m) rescue deal which will see it absorbed by defence equipment firm Denel.
Sunspace, a spin-out of South Africa-based University of Stellenbosch, has accepted $5.4m as part of a rescue deal which will see the firm absorbed by state-owned defence manufacturer Denel.
The company went into administration after it was unable to pay neither its creditors, nor its staff, who hadn’t been paid in two years.
The rescue plan for Sunspace stated that the firm’s financial position was not caused by incompetence or neglect by the directors, but rather undercapitalisation.
It said: “It is remarkable what the company achieved with the limited financial sources available and with the required government support sadly lacking, notwithstanding numerous decisions and undertakings to do so.”
