Dana Gas Investors Said to Hire Linklaters to Broker Deal

08/05/2012 23:47 AST

Investors in Dana Gas PJSC (DANA)'s $1 billion Islamic bonds hired Linklaters LLP to help negotiate the restructuring of the debt due in October, three people familiar with the matter said.

The London-based law firm was hired last month, according to the people who declined to be identified because the information is private. Linklaters and Dana Gas declined to comment.

The company, whose chief executive officer plans to retire this year, hired Blackstone Group LP (BX) to advise on restructuring the Islamic bonds, three people familiar with the matter said in April. Deutsche Bank AG (DBK) is also advising Dana Gas, two people with knowledge of the matter said in January. The yield on its 7.5 percent sukuk climbed 33 percentage points so far this year to 70.7 percent at 6:35 p.m. in Dubai.

While the Sharjah, United Arab Emirates-based company, which produces and explores for oil and gas in Egypt and Iraq's Kurdish region, has said it will repay the sukuk, investors haven't been informed how the company plans to do so, Atul Gharde, a Hong Kong-based credit analyst at SJS Markets Ltd., said today.

Dana Gas, whose parent Crescent Petroleum Co. owns 3 percent of Hungarian refiner Mol Nyrt., said Jan. 17 it would continue to meet debt obligations and appointed an unidentified financial adviser. The company repeated the commitment to settle financial obligations in a March 20 report filed to the Abu Dhabi stock exchange.

Money owed by customers almost doubled last year to $501 million from $255 million, Dana Gas said in March. The company said $212 million of the total was owed for more than four months. CEO Ahmed Al Arbeed plans to retire in September and remain a board member, the company said last month. Shareholders will elect a board May 31, it said this week.

The shares of Dana Gas have dropped 4.4 percent so far this year to 43 fils. Abu Dhabi's ADX General Index (ADSMI) climbed 3.5 percent in the same period.

Bloomberg