Monday 10, July 2017 by William Mullally

Dana Gas calls some speculation over its Sukuk 'categorically untrue'

The Company will keep updating the market as the process evolves,” said Dana Gas.

Dana Gas released its full statement to Sukuk bondholders after much speculation over the lawsuit it brought against the possible non-Shari'ah compliance of its Sukuk.

“To summarise, we hope we have set the record straight and addressed some of the misleading press coverage out there that states that Dana Gas is seeking to use the legal status of the current Mudarabah Sukuk as a negotiating ploy. This is categorically untrue. The steps we took to protect the Company’s reputation and assets are in measure with the amount of value at stake, concerns raised by the aggressive communications and threat of default received from the Sukukholders’ representatives, the Trustee and Delegate in late May, and the legal issues of the current Sukuk,” Dana Gas said.

“We are seeking a consensual solution and to put a legal, enforceable structure in place for the benefit of all stakeholders. The commercial deal will need to reflect the improved bond market conditions and the Company’s vastly improved credit since the current Sukuk was launched five years ago. It goes without saying that any deal needs to obtain the approval of Shareholders who, in the Company’s view, will not accept unreasonable terms. That said, the Company is determined to act in the best interests of all its stakeholders, and remains open to direct, frank and constructive engagement. We appreciate that this was a lot of information to absorb all in one go, so we will be posting the script from this call on our website in both English and Arabic. The Company will keep updating the market as the process evolves,” it concluded.

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