Sharjah, 1 Nov. 2012 (WAM) - Dana Gas PJSC (Dana Gas? or the Company) provided an update on the status of the $1bn Sukuk-al-Mudarabah (the Sukuk) which matured at midnight yesterday.
Dana Gas is in ongoing discussions with an Ad-hoc Committee of Sukuk holders over terms to amend and extend the Sukuk. The desirability to amend and extend the terms of the Sukuk became evident in the interests of all stakeholders owing to the recent liquidity challenges that have emerged as a result of challenging external macro-economic and political circumstances in the region, including the extensively reported problems of payment delays where the Company operates, the company said in a press release today.
As discussions continue, The Company has not paid the principal amount of US $ 920 million due on 31 October 2012 and the accrued profit amount of $ 18.75 million due on 30 October 2012 as they are the subject of the aforesaid discussions. Until this date, the Company has consistently honoured its payment obligations. To date, $356 million has been paid to Sukuk holders over the last 5 years.
The Company believes that the aforesaid liquidity challenges are short term and is encouraged by recent developments regarding receivables due to Dana Gas. The Egyptian Government in particular made significant efforts to address the backlog of payments due to Dana Gas PJSC. In the meantime, operations continue as normal and unabated. Most recently, the Company has announced a new gas discovery at West Sama-1 in the Nile Delta, and the commencement of production from its joint-venture with Egyptian Government-owned EGAS, the Egyptian Bahrain Gas Derivatives Company (EBGDCo), to produce NGL at Ras Shukeir.
Dana Gas remains committed to finding a consensual solution that is fair and equitable to all stakeholders and will make further announcements in line with the progress of discussions.
Copyright Emirates News Agency (WAM) 2012.
