Dana Shareholders To Vote On Restructuring Plan On Mar 14

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.