Dana Gas Reaches Bond Restructuring Deal

摘要

Dana Gas, a UAE-based independent, has announced that holders of its $700 million Islamic bond have agreed to its restructuring proposal, effectively ending a year-long standoff. The dispute first arose when the UAE-listed company announced that the Islamic bond, known as a sukuk, was illegal because it wasn’t compliant with Sharia law and therefore didn’t need to be repaid. Many legal experts said this rationale did not hold up and pointed to the fact that the sukuk is ultimately governed by English law and the company was obligated to repay its borrowings (IOD Aug.1’17). At the time, Dana Gas was short on cash to repay the bondholders.