UAE’s Dana Gas agrees with creditors on $700 mln sukuk restructuring

Updated 13 May 2018
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UAE’s Dana Gas agrees with creditors on $700 mln sukuk restructuring

DUBAI: Energy producer Dana Gas reached agreement with creditors on restructuring $700 million of sukuk, the firm said on Sunday, potentially ending a protracted legal battle that unsettled the global Islamic finance industry.
The United Arab Emirates firm said in June it would not redeem the Islamic bonds, arguing that changes in Islamic financial practice since they were issued made them invalid under UAE law. This led to months of negotiations and a fight in UAE and British courts.
Under the deal with the sukuk holders’ committee, investors who want to exit the instruments will be able to do so at 90.5 cents on the dollar, which includes a bonus of 2.5 cents if they accept within seven days of the start of the tender offer.
Alternatively, investors will be able to exchange the sukuk into new three-year Islamic instruments with a 4 percent profit rate, while receiving final profit payments that they were owed before the old sukuk matured last Oct. 31.
“The consensual transaction represents a means to resolve amicably all current issues and disputes facing the parties,” Dana said in a statement.
The company said it expected to launch the tender offer this month and complete the deal by the first half of July — though this depended on conditions including payment of costs of certain parties, termination of all current litigation, and the release of certain claims being met.
Holders representing over 52 percent of $350 million of sukuk that were convertible into equity, and over 30 percent of $350 million of non-convertible sukuk, agreed to take no further action before the tender offer, Dana said.
Its shares jumped 4.8 percent in early trade on Sunday in response to news of the deal, which it said could cut its debt by up to $385 million.


British Airways launches first direct flight from Dammam to London

Updated 19 min 28 sec ago
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British Airways launches first direct flight from Dammam to London

  • Flights will be operated by a four-class Boeing 777-200 departing year-round
  • Dammam will become the third route the airline flies to in Saudi Arabia

LONDON: British Airways has launched the first ever direct flight from Dammam to London Heathrow.
The carrier has already started selling tickets priced from SR2,480 ($660) for the new route which will start Dec. 1, 2019.
Flights will be operated by a four-class Boeing 777-200 departing year-round from Dammam’s King Fahd International Airport and landing in Terminal 5 at London Heathrow, British Airways said in a statement on Tuesday.
Dammam will become the third route the airline flies to in Saudi Arabia after Riyadh and Jeddah.
“This new link between Dammam and London underlines the importance of the Eastern province and the need for smooth onward connections to Europe and the United States, said Moran Birger, BA head of sales for the Middle East and Asia Pacific.
It will cut journey times between the two airports by three hours or more because passengers will no longer need to either drive to Bahrain or transit through Riyadh for a connecting flight, the airline said.