DUBAI, May 17 (Reuters) - A committee of the holders of some $700 million in Islamic bonds issued by Dana Gas has appointed New York-based boutique investment bank Moelis and U.S. legal firm Weil, Gotshal & Manges to negotiate restructuring of the notes, sources familiar with the matter said on Wednesday.
With a cash balance of around $300 million at end-March and the sukuk due to mature in October this year, the Abu Dhabi-listed energy producer said earlier this month that it intended to hold discussions with its creditors.
Dana's sukuk, issued in 2013, comprise convertible paper with a 7 percent profit rate and non-convertible sukuk with a 9 percent profit rate.
AdvertisementThe 7 percent paper has stabilised at a cash price of 86 cents on the dollar since mid-March and has become illiquid since then. The 9 percent sukuk, with a cash price of about 85 cents, was yielding 51 percent on Wednesday.
Dana has faced a cash shortage caused by a lack of payments from its assets in Egypt and Iraq's Kurdistan, due to political and economic instability as well as a legal dispute in Kurdistan. The company says it is owed receivables of roughly $1 billion by Egypt and the Kurdistan Regional Government.
(Reporting by Davide Barbuscia; Editing by Andrew Torchia) ((Davide.Barbuscia@thomsonreuters.com;))
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