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| A Dana Gas gas facility in Egypt. Wam |
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.
