Dana Gas appoints adviser for $700mn sukuk restructuring

Local workers control a gas valve at the FGSZ Natural Gas Transmission Closed Company Limited, in Vecses, some 20 kms from Budapest on January 14, 2009. EU leaders kept up pressure today on Russia and Ukraine to resolve their gas dispute after an attempt to resume transit supply failed to deliver gas to European consumers. Hungary's daily gas consumption amounts to 64 million cubic metres, made up of less than 50 million cubic metres received from the Hungarian storage units, more than eight million cubic metres flowing in from Austria, around eight million cubic metres from the country's own gas fields anf more than eight million cubic meters are sent into the Serbian and Bosnian networks. AFP / ATTILA KISBENEDEK (Photo credit should read ATTILA KISBENEDEK/AFP/Getty Images)

DUBAI / Reuters

United Arab Emirates energy firm Dana Gas appointed Houlihan Lokey as financial adviser and Squire Patton Boggs as legal adviser for the restructuring of its $700 million sukuk maturing in October, sources said on Sunday.
The company, which has been facing a cash shortage because of missed payments from its assets in Egypt and Iraq’s Kurdistan, announced in early May its intention to hold discussions with the sukuk holders.
Dana and New York-listed Houlihan Lokey did not immediately respond to requests for comment. Abu Dhabi-listed Dana’s creditors have appointed New York-based bank Moelis and US legal firm Weil, Gotshal & Mangers as financial and legal advisers to negotiate the restructuring of the Islamic bonds. Dana said at the beginning of May that it needed to focus on “medium-term cash preservation” because of the challenges it faced over cash collections. As of the end of March, the company’s cash balance was $298 million.
The company announced on May 18 that it had received a $50 million payment from the Egyptian government, representing 18 percent of the company’s total overdue receivables from Egypt as of the end of the first quarter of this year.

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