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Dana Gas Asks Bondholders for Standstill After Payment Miss

Published: 13/11/2012 08:24:13 PM GMT
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Dana Gas PJSC (DANA) said it's in talks for a so-called standstill agreement with bondholders after the United Arab Emirates fuel producer failed to p (more)

Dana Gas PJSC (DANA) said it's in talks for a so-called standstill agreement with bondholders after the United Arab Emirates fuel producer failed to pay almost $1 billion in Islamic debt on maturity last week.

The company and a committee of bondholders "are currently negotiating the necessary standstill and lock-up agreement which the parties are working together to conclude soon," Dana Gas said in a statement to the Abu Dhabi bourse today. Under a standstill accord, creditors agree not to make an effort to collect debt payments or claim assets backing a security.

The missed payment spurred speculation debt-holders may try to seize the company's gas fields in Egypt since the 7.5 percent sukuk are partly secured by them. Political instability in the North African nation and Iraq's Kurdish region, Dana Gas' biggest sources of revenue, led to payment delays this year. BlackRock Inc. (BLK), the world's largest asset manager, and London- based Ashmore Group Plc (ASHM) together own more than 50 percent of the notes, according to a Dana Gas official who asked not to be named citing company policy.


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