Dana Gas reportedly reaches settlement agreement with sukuk holders - ENTERPRISE

Sunday, 13 May 2018

The UAE’s Dana Gas appears to have reached a settlement agreement with holders of its USD 700m sukuk. “A committee representing sukuk holders, which include BlackRock Inc. and Goldman Sachs Group Inc., agreed to accept an immediate cash payout of USD 0.20 to the USD and to roll the rest into a three-year security,” sources with knowledge of the matter tell Bloomberg. The agreement would bring the Sharjah-based producer’s court case with its Islamic bond holders to an end.

Dana Gas rejects bondholders’ restructuring proposal in Islamic finance row - FINANCIAL TIMES

SEPTEMBER 13, 2017

Kate Allen 

UAE-based energy company Dana Gas has rejected an offer by its creditors to restructure $700m of Islamic bonds after the company declared its sukuk “unlawful”, in a case that could have wider implications for the Islamic finance market. 

Dana Gas, which operates in Egypt and Iraqi Kurdistan, told creditors in June that it would not make payments on the debt as the bond’s structure had been deemed unlawful after changes to UAE Islamic law. 

Some Dana Gas investors formed an ad hoc negotiation committee to argue that the move was a repudiation of the English law governing the Islamic finance product. 

Dana Gas said to see creditors turn debtors as showdown deepens - THE NATIONAL / BLOOMBERG

 A Dana Gas gas facility in Egypt. Wam

August 8, 2017 06:58 PM

Gas producer says sukuk litigation may last more than 10 years

The standoff between Dana Gas and its bondholders took a fresh twist after the Middle Eastern energy explorer that’s trying to void US$700 million of its own debt was said to believe investors may even have to pay the company.

The Sharjah-based gas producer says that in one scenario the court battle with holders of the Islamic securities, or sukuk, may see it having to return less than 10 per cent of the amount it borrowed, according to a person familiar with Dana Gas’s own analysis. In a second scenario, it believes creditors may have to pay it as much as $150m, the person said, adding that the case may last more than 10 years.