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DUBAI / Reuters
Dana Gas revoked an offer to creditors to exchange its outstanding $700 million Islamic bond for new notes, ending the chance of a consensual resolution to a case that could shape the future of the global Islamic finance industry.
Dana is refusing to repay holders of its Islamic bond, or sukuk, which matures in October. The energy firm said last month it had received legal advice that the bond was no longer sharia-compliant in the UAE following changes in Islamic finance interpretations over recent years, and was therefore unlawful.
Dana last month outlined a potential offer to replace the bond with new notes with less than half the profit rate of its outstanding sukuk.