IslamicFinance.de

Dana Gas will pay $70 million in cash to bondholders and offers aditionally 8% coupon on remaining debt in order to buy time to restructure its sukuk. The company is facing difficult times as it missed a bond redemption on its sukuk that has matured on October 31. In order to fix this problem, Dana has made an agreement with adhoc committee of creditors, and thus earned time to restructure its finances.

Dana Gas has eventually agreed upon restructuring its sukuk worth $920 million. Thus, it will potentially avert the seizure of its assets in Egypt. According to Dana's statement on Wednesday, the company intends to pay its sukuk holders a mix of cash and new bonds which will be split between a sukuk and a convertible. There is no information on what proportion would be in cash. This solution to Dana's default is believed to serve best the interests of all stakeholders.