RPT/MIDEAST DEBT-Dana, creditors gear up to thrash out sukuk deal

Fri May 18, 2012 7:42am GMT

(Repeats May 18 story to add codes)

* Bonds trading at cash price of high 60s

* Dana hires advisers, seeks "consensual" agreement

* Full repayment on time increasingly unlikely

* Restructuring scenario may appeal

By Mala Pancholia and Rachna Uppal

DUBAI, May 17 (Reuters) - Dana Gas could become the first company in the United Arab Emirates to restructure a bond as concerns rise that it will not have enough cash to repay a $1 billion convertible sukuk, or Islamic bond, at maturity in October.

The Abu Dhabi-listed firm said this week it had hired advisers to help it weigh options for repayment of $920 million still outstanding on the out-of-the-money convertible and was committed to finding a consensual solution.

Dana's shares have been battered by concerns over how it will find funds to repay the bond, and limited communication from the company on the matter. The stock has dropped 40 percent in the past year, to 0.39 dirhams at Wednesday's close - just one-fifth of the bond's conversion price of 1.926 dirhams.   Continued...

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