Dana Gas Asks Bondholders for Standstill After Payment Miss

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Dana Gas PJSC said it’s in talks for a so-called standstill agreement with bondholders after the United Arab Emirates fuel producer failed to pay almost $1 billion in Islamic debt on maturity last week.

The company and a committee of bondholders “are currently negotiating the necessary standstill and lock-up agreement which the parties are working together to conclude soon,” Dana Gas said in a statement to the Abu Dhabi bourse today. Under a standstill accord, creditors agree not to make an effort to collect debt payments or claim assets backing a security.