Investors in $700 million sukuk issued by UAE's Dana Gas propose restructuring

Investors in $700 million sukuk issued by UAE's Dana Gas propose restructuring:

"Holders of about $700 million of Islamic bonds issued by Abu Dhabi-listed Dana Gas have submitted a restructuring plan to the company’s management, a committee for the holders said on Wednesday. The sukuk are due to mature this year but Dana has refused to redeem them on the grounds that changes to Islamic financial practice in recent years make them unlawful in the United Arab Emirates - a claim which the holders reject. Dana argues that the sukuk’s mudaraba structure - a form of investment management partnership - has become obsolete since 2007 when the company originally issued the debt. At that time the structure was common but Dana says many of its features have been discredited."



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