Dana Gas to Miss Payment on $700 Million Sukuk Tomorrow - Bloomberg:
"A Middle Eastern energy company that has questioned the lawfulness of its own sukuk won’t settle the $700 million worth of debt owed to investors tomorrow, according to people familiar with the matter. Dana Gas PJSC, the Sharjah, United Arab Emirates-based energy producer, has no plans to repay the two mudaraba sukuk of $350 million in size each, and the company is confident it will win a court case with bondholders, the two people said, asking not to be identified because the information is private. A spokeswoman for the company didn’t immediately comment when contacted by Bloomberg. The company, which has struggled to collect payments from Egypt and Iraq’s Kurdish region, announced plans in May to restructure the debt, but it shocked the Islamic finance industry a month later when it said it no longer considered its sukuk Shariah-compliant. The missed payment tomorrow will be the second time in five years the company fails to settle bonds at maturity."
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