Dana Gas calls for Sukuk restructuring
Dana Gas has invited Sukuk holders to form a committee to represent them and contact the company over restructuring discussions on its Sukuk dated 8 May 2013.
The news came as the company published its Q1 2017 results on Thursday showing a net profit of $11 million, compared to $6 million in Q1 2016.
The call to restructure the company’s Sukuk follows a statement on 3 May in which Dana Gas had announced the need to do so as a result of continued challenges it faces around cash collections and the resulting need to focus on short to medium term cash preservation.
Dana Gas said current year profitability reflects increased revenue, reduced operating costs and recognition of $5 million of ‘other income’. The firm noted that net profit in Q1 2016 included incremental interest of $8 million which was reversed at year-end following a Tribunal order allowing interest only at LIBOR plus two per cent; excluding this, Dana Gas would have shown a loss in Q1 2016 of $2 million.
Subsequent to the end of Q1 2017, the company said that in May it prepaid the Zora outstanding loan amounting to $60 million plus applicable interest and costs.