Abu Dhabi – Mubasher: Dana Gas will discuss on Tuesday an initial proposal for restructuring existing sukuk, according to a statement.

On 3 May, Dana invited the holders of its outstanding $350 million 9% ordinary certificates and $350 million 7% exchangeable certificates, each due October 2017 to form an ad-hoc committee in order to start discussions relating to sukuk.

The company has recently received legal advice that the Sukuk in its present form is not Shari’a compliant and is therefore unlawful under UAE law so a restructuring of the current sukuk is necessary for the benefit of all stakeholders.

Dana recommends to exchange the sukuk with a new enforceable, Shari’a compliant instrument, which would have a tenor of four years.

The company proposes to make prepayments under the new Sukuk either in whole, or in part at par, prior to its maturity without any penalty.

The next two distributions scheduled for 31 July and 31 October cannot be paid now as the existing sukuk is unlawful.