The standoff between Dana Gas PJSC and its bondholders took a fresh twist after the Middle Eastern energy explorer that’s trying to void $700 million of its own debt was said to believe investors may even have to pay the company, Bloomberg News reported. The Sharjah-based gas producer says that in one scenario the court battle with holders of the Islamic securities, or sukuk, may see it having to return less than 10 percent of the amount it borrowed. In a second scenario, it believes creditors may have to pay it as much as $150 million, the person said, adding that the case may last more than 10 years. Dana Gas, which announced plans to restructure the debt in May, this week retracted an offer to replace the bonds and is pursuing a resolution in court. The company said in June the debt was no longer Shariah-compliant. Investors questioned the validity of the claim since neither sukuk regulations nor United Arab Emirates laws governing the matter have changed since they were issued in 2013.
