Dana Gas sees debt restructuring court case playing out in its favor
Dana Gas sees debt restructuring court case playing out in its favor: Sharjah-based gas producer Dana Gas — which has significant exposure to Egypt — decided this week to retract its June decision to restructure USD 700 mn in sukuks it borrowed from investors, preferring its odds pursuing the case in court, sources familiar with the matter tell The National. The company believes that through the court, it may have to return only 10% of the debt. “In a second scenario, it believes creditors may have to pay it as much as USD 150 mn,” the source adds. Dana Gas had decided in May to restructure the sukuks after they were deemed unlawful under UAE regulations. A ruling in Dana’s favor may “do significant damage to the Islamic capital markets,” according to Arqaam Capital’s Abdul Kadir Hussain.
In other company news, Dana Gas plans to begin drilling activities in its Egyptian Mediterranean offshore and onshore concessions before the end of 2017, an unnamed EGAS official tells Al Shorouk. Dana risks losing the plots it was assigned for natural gas exploration if it fails to begin its work before the set deadline, the source explains.