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UAE-based independent Dana Gas has made progress on the restructuring of its $1bn Sukuk. It raised concerns when it missed an end October deadline on repayment of the outstanding $920mn, but has now reached an “in-principle” agreement with creditors, the company said on 7 November. These are an ad hoc committee of Sukuk holders which hold the majority of the debt. The biggest creditors are large investment management companies Blackrock and Ashmore.
The agreement says that $80mn of the Sukuk currently held by Dana itself will be cancelled and that Sukuk holders will receive a partial cash payment from the company’s balance sheet. The remaining Mudaraba Sukuk will be reinstated as two pari passu instruments comprising a new ordinary Sukuk and a new convertible Sukuk which will have revised economic terms. (CONTINUED - 712 WORDS)