Dana Shareholders To Vote On Restructuring Plan On Mar 14
Now Reading
Dana Shareholders To Vote On Restructuring Plan On Mar 14

Dana Shareholders To Vote On Restructuring Plan On Mar 14

The Abu Dhabi-listed energy firm missed repayment of its $920 million sukuk last year.

Avatar

Shareholders of Dana Gas, the Abu Dhabi-listed energy firm, will vote on March 14 to approve a restructuring plan for its $920 million sukuk after failing to meet maturity of the Islamic bond last year.

Dana became the first company in UAE to miss repayment of a maturing bond on October 31 but agreed new terms with a creditor committee representing bondholders, which included investment firms Ashmore Group and BlackRock, a week later.

The company has been hamstrung by payment delays on gas it supplied to Egypt and Iraq’s Kurdistan region. In early December, Dana’s outstanding receivables amounted to $220 million and $350 million respectively, according to a company statement at the time.

Under the plan, the Sharjah-based company will repay $70 million in cash, with the remaining $850 million split equally between two new five-year sukuk – an ordinary Islamic bond and a convertible sukuk – which pay an average coupon of eight per cent.

Crescent Petroleum, the largest shareholder in Dana with a 20 per cent stake, will back the restructuring plan, its chief executive told Reuters in January.

Dana posted a 20-per cent rise in 2012 net profit on the back of higher oil prices and lower costs, it said earlier this month.


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top