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Large bonuses and raises for executives, reputational damage from an aborted partnership with the Guptas and lenders refusing to refinance debt unless a new board is chosen are being blamed for Denel running out of cash to pay staff and suppliers. Spokeswoman Pam Malinda confirmed Denel was "experiencing severe liquidity challenges" that were affecting payments but gave no reasons. She said Denel was locked in talks with the Treasury on Thursday and was expected to announce the outcome to staff on Friday. Treasury officials said in October Denel risked defaulting on its entire R1.85bn government-guaranteed debt, which expires in September 2018. Lenders had refused to refinance the debt due to concerns about corruption and corporate governance failures. They had warned the Treasury that unless Denel appointed a fit and proper board by the end of December, the arms maker’s lending facilities would be withdrawn. The board members, in particular chairman Dan Mantsha, repeatedly tried to...

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