DUBAI- Prices of about $700 million of sukuk issued by United Arab Emirates energy producer Dana Gas
DANA.AD
fell by around three points on Thursday after talks between some local creditors and the company failed to lead to a settlement of their dispute.
Last year the company refused to repay its Islamic bonds when they matured, claiming they were no longer sharia-compliant and therefore not valid under UAE law. It sought declarations in British and UAE courts on the validity of the sukuk.
Legal proceedings are continuing but sources told Reuters this week that several weeks of discussions between the firm and some of its local creditors, aimed at finding an out-of-court settlement, did not lead to a solution.
The price of the convertible portion of the sukuk
AESUKSK6415=
fell to 86.5-90.5 cents on the dollar on Thursday from 90.5-92.5 cents previously, Thomson Reuters data showed.
Sources familiar with the dispute said the lack of an agreement between the company and creditors suggested that for the time being at least, a protracted legal battle - which could last months if not years - was the most likely outcome.
(Reporting by Davide Barbuscia; Editing by Andrew Torchia) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))
Last year the company refused to repay its Islamic bonds when they matured, claiming they were no longer sharia-compliant and therefore not valid under UAE law. It sought declarations in British and UAE courts on the validity of the sukuk.
Legal proceedings are continuing but sources told Reuters this week that several weeks of discussions between the firm and some of its local creditors, aimed at finding an out-of-court settlement, did not lead to a solution.
The price of the convertible portion of the sukuk
Sources familiar with the dispute said the lack of an agreement between the company and creditors suggested that for the time being at least, a protracted legal battle - which could last months if not years - was the most likely outcome.
(Reporting by Davide Barbuscia; Editing by Andrew Torchia) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))
