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Dana Gas Said to See Creditors Turn Debtors as Showdown Deepens

  • Company said to see two dispute outcomes, both in its favor
  • Attempts to engage with investors are not working: lawyer

The standoff between Dana Gas PJSC and its bondholders took a fresh twist after the Middle Eastern energy explorer that’s trying to void $700 million of its own debt was said to believe investors may even have to pay the company.

The Sharjah-based gas producer says that in one scenario the court battle with holders of the Islamic securities, or sukuk, may see it having to return less than 10 percent of the amount it borrowed, according to a person familiar with Dana Gas’s own analysis. In a second scenario, it believes creditors may have to pay it as much as $150 million, the person said, adding that the case may last more than 10 years.