* Co negotiating standstill and lock-up agreements
* Says both parties working to conclude agreement soon
* Dana trustee asked holders to decide on action on Monday
DUBAI, Nov 6 Dana Gas, which last week
missed a $920 million Islamic bond redemption, said on Tuesday
it was still negotiating a standstill agreement with a
Dana, headquartered in the emirate of Sharjah, did not repay
a five-year convertible sukuk on maturity last Wednesday,
becoming the first UAE company to miss a bond redemption.
"The company and the committee are currently negotiating the
necessary standstill and lock up agreement which the parties are
working together to conclude soon," Dana said in a statement.
On Monday, the special purpose vehicle administering the
bond declared a "dissolution event" had occurred - formally
acknowledging Dana had failed to redeem the sukuk - and asked
bond holders to decide their course of action.
This is a legal step that leaves the holders with a choice
between liquidating the bond and claiming the assets backing it,
or agreeing to restructure the sukuk in the hope of obtaining
A source close to the creditors told Reuters last week that
bond holders were considering claiming the Egyptian assets of
Dana Gas, which were used as security against the issue, after
the company missed the redemption date.
Holders of Dana sukuk include big international investment
firms like BlackRock Inc and Ashmore Group.
They are yet to make a public statement on their stand.
Dana's problems started after the company was hit by payment
delays on the gas it supplies to Egypt and Iraq's Kurdistan
region. Its shares have slumped on the Abu Dhabi bourse since
Reuters reported last week that the company was set to miss the