Dana Gas Sukuk Talks Stall as It Seeks 15% Discount on Buyback

  • Company suggested buying back about $200 million of the sukuk
  • Dana sought to rollover debt into new bonds with 4% coupon
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Talks to resolve a dispute between Dana Gas PJSC and holders of $700 million of Islamic securities broke down after the company proposed a 15 percent haircut on some of the debt, according to two people familiar with the matter.

The Sharjah, United Arab Emirates-based energy company suggested buying back about $200 million at 85 cents to the dollar, and rolling over the rest into new securities with a profit rate of 4 percent, the people said, declining to the identified because the talks are private.