Dana Gas gets wide support from creditors for Sukuk restructuring

Dubai

United Arab Emirates’ energy producer Dana Gas said that a large majority of holders of its outstanding $700 million Sukuk had consented to a proposed restructuring of the notes. The company, which last year refused to redeem the Islamic bonds because it claimed they were no longer Sharia-compliant, last month reached a restructuring agreement.
That followed a protracted and complex legal battle in British and UAE courts with a number of financial institutions including fund manager BlackRock, an investor, and Deutsche Bank, which represented creditors in the legal proceedings. Dana said last month that as part of its restructuring deal, creditors who want to exit the instruments can do so in a tender at 90.5 cents on the dollar. Alternatively, they can exchange the Sukuk for new three-year Islamic instruments with a 4 percent profit rate, while receiving final profit payments that they were owed before the old Sukuk matured last Oct. 31.—Reuters

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