DUBAI, Sept 13 (Reuters) - Holders of about $700 million of Islamic bonds issued by Abu Dhabi-listed Dana Gas have submitted a proposal to restructure the sukuk to the company’s management, a committee representing the holders said on Wednesday.
Dana has been refusing to redeem the sukuk, which are due to mature in October, 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.
Terms of the proposal include a cash paydown to sukuk holders of $300 million, an extension of the sukuk’s maturity by three years, and maintaining the sukuk’s current rates of periodic profit distribution to investors.
“The proposal has the in-principle support of over 70 percent in value of all sukuk holders combined,” the committee said.
Dana and the sukuk holders have been fighting the case in courts in London and the UAE, and London’s High Court is expected to begin a major hearing of the case next week. (Reporting by Davide Barbuscia; Writing by Andrew Torchia)