14 Sep 2017 - 0:09
Dana Gas for sukuk restructure
Dubai: Holders of about $700m of Islamic bonds issued by Abu Dhabi-listed Dana Gas have submitted a proposal to restructure the sukuk to the company’s management, a committee representing the holders said yesterday.
Dana has been refusing to redeem the sukuk, which are due to mature in October, on the grounds that changes to Islamic financial practice in recent years make them unlawful in the United Arab Emirates - a claim which the holders reject. Terms of the proposal include a cash paydown to sukuk holders of $300m, an extension of the sukuk’s maturity by three years, and maintaining the sukuk’s current rates of periodic profit distribution to investors.
“The proposal has the in-principle support of over 70 percent in value of all sukuk holders combined,” the committee said.
Dana and the sukuk holders have been fighting the case in courts in London and the UAE, and London’s High Court is expected to begin a major hearing of the case next week. Dana will continue to pursue litigation over the sukuk, the sources told Reuters.
The source was speaking after a committee of sukuk holders submitted a restructuring proposal to the management of Dana. Dana has not so far issued a public statement in response to the proposal.