Dana Gas Restructures $1 Billion Bond to Avert Asset Seizure
07 Nov 2012 08:24 GMT
 
Nov. 7 (Bloomberg) -- Dana Gas PJSC, which missed payments on nearly $1 billion of Islamic bonds last week, reached a restructuring deal with sukukho (more)

Nov. 7 (Bloomberg) -- Dana Gas PJSC, which missed payments on nearly $1 billion of Islamic bonds last week, reached a restructuring deal with sukukholders including BlackRock Inc., averting a potential seizure of its Egyptian energy assets.

The United Arab Emirates' fuel producer reached an in- principle agreement with creditors and will convert the Islamic bonds into an ordinary and a convertible sukuk, "which will have revised economic terms," the Sharjah-based company said in a statement to the Abu Dhabi stock market today. Sukukholders will also receive a partial cash payment.

Dana Gas had sparked concern it may default after missing the Oct. 31 deadline and spurred speculation debt-holders may try to seize the company's Egypt gas fields, which partly secured the sukuk. BlackRock, (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 identified citing company policy.


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