Denel and Draken International, an American private defence contractor, have reached a mediated agreement to resolve their dispute over the delayed delivery of former South African Air Force Cheetah fighter jets, according to court filings in Florida. The financial terms of the settlement have not been disclosed.

The two companies informed a Florida court in late August that they had reached an agreement covering all claims in the case.

The dispute followed a 2017 agreement under which Draken bought 12 Cheetah aircraft for use in its American adversary-air training business. The company planned to use the South African-built fighters to simulate enemy aircraft during military exercises.

The Cheetah is a South African-developed fighter jet, based on the French Mirage III, that served with the South African Air Force from the 1980s until 2008.

The original contract was valued by Denel at $29.3 million (later amended to $35.2 million) and included aircraft, logistics support, and spare parts.

Only three Cheetahs were ever delivered. Denel’s annual report said the transaction involving those aircraft and spares was worth $5.9 million, leaving most of the contract incomplete. Draken alleged that the aircraft were delayed and did not meet agreed airworthiness requirements, including the provision of suitable ejection-seat components.

The company launched legal action against Denel in Florida last year, seeking the return of advance payments and further damages. Draken said it had paid about $12.7 million under the project. Denel later filed a counterclaim, arguing that Draken had contributed to the failure of the agreement by losing interest in completing the purchase.

The Cheetah programme was disrupted by delays in restoring stored aircraft to flying condition, capacity problems associated with Denel’s decline, and the Covid-19 pandemic. Draken also lost the United States Air Force training contract for which the aircraft were intended.

The settlement closes the immediate legal dispute but leaves a larger question about whether Denel can still convert South Africa’s defence-industrial heritage into reliable export business.