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Bloomberg
Dana Gas has reached an agreement with key holders of $700 million of its Islamic bonds to restructure the securities, seeking to end a legal battle.
A committee representing sukukholders, including BlackR ock Inc and Goldman Sachs Group Inc, have agreed to terms that include two options for creditors, the company said in a statement. Dana Gas and creditors also entered into an agreement to dismiss all pending litigation.
The first option allows holders to exit their principal and to tender their claims at 90.5 cent per $1 of the face value of their holdings, including an early participation fee of 2.5 cent. The second offers holders 20 percent of the face value of the existing sukuk. The rest will be rolled over into a new Wakala sukuk with a profit rate of 4 percent. Creditors will be paid accrued profit from May 2017 to October 2017 at the existing rate of 7 percent and 9 percent, and accrued profit of 4 percent from November to the securities’ close.