Dana-Gas Sukuk Matured & Defaulted $992M Thursday leaving Dubai Breathless. What a godsend fodder for Lawless Corporate Corrupt Courts. Keep coming! Girls. Sukuk is an Unislamic Hogwash Religiously non-interest loan system Sharia Scam. According to Global Islamic Finance Report 2012, $1.34 Trillion of Assets are being managed according to Baloney Islamic Investment Principles. Sheik Muhammad Taqi Usmani President of Shariah Council of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) taxed Sukuk structuring elements & complex mechanisms nothing than Seigniorage Banksters Conventional Bonds:
Sukuk is Unislamic for following reasons.
- Sukuk ain’t represent ownership shares in assets or commercial or industrial enterprises that bring profits or revenues
- Sukuk-Holders Payments ain’t outta share of profits (after costs) of assets or enterprise
- The value payable to the Sukuk-holder on maturity ain’t current market value of the assets or enterprise and ain’t principal originally invested.
- Sukuk complex mechanisms is Unislamic Seigniorage Banksters Conventional Bonds since they do not return to investors more than fixed percentage of principal, based on interest rates, while guaranteeing return of investors' principal at maturity.
Now Shut-up, Sit-down & Listen to Dow Jones Bankruptcy & Debt News... Your discretion is advised:
Dana, Creditors Battle for Better Terms on $920 Million Sukuk Repayment
By Nikhil Lohade
Dana Gas DANA.AD 0.00% has failed to repay a $920 million Islamic bond that came due Wednesday, arguably the first U.A.E. company to do so. But not many are jumping to call it a default. Yet. Sure, the company technically still has a three-day grace period to meet its obligations after the bonds matured. But if they haven’t paid yet, the chances are slim that they will do so in the next 72 hours. Which leaves the sukuk holders—including two large asset management firms Blackrock Inc. BLK -0.29% of the U.S. and the U.K.’s Ashmore Investment Management, part of Ashmore Group PLC ASHM.LN -0.88%with no options but to seek legal recourse to retrieve the money that the company owes them. And that is what they are planning to do, according to a person involved in the matter. But Dana‘s response seems more feisty than you’d expect for a company that’s potentially facing claims on its assets. The Sharjah-based energy company graciously acknowledged on Thursday its failure to repay the bond on maturity, while noting that discussions are ongoing with the debt holders to amend the terms of the sukuk and extend its maturity. Two starkly different views are being played out publicly. The truth, though, likely lies somewhere in between. Dana’s inability to meet this debt repayment is not really surprising to most investors. The company had about $141 million in cash at the end of September and continues to be in talks with the governments in Egypt and Iraq’s Kurdistan region for about $570 million of late payments. The two sides–Dana and the sukuk holders–have been in talks over the debt repayment for months. Both are represented by high profile advisers. That they still couldn’t come up with a deal is difficult to digest. What is more likely is that both are hardballing each other for some last minute advantages, said one Abu Dhabi-based broker. A broader understanding is likely to be in place for Dana Gas to restructure its sukuk, while both sides may have held out for the due date to put more pressure on the other, he added. A legal battle may be an option, but it’s not one that either side would want to embark upon in a hurry. While some bits of the sukuk documentation are subject to the jurisdiction of the English Courts, the “Mudarabah agreement” itself (a shariah-compliant agreement in which one party invests the capital and the other manages the business) and asset pledges are governed by U.A.E. law. What is more likely is that Dana Gas and the sukuk holders over the next few days will thrash out a deal to restructure the sukuk. At least that’s what the market is betting on today: Dana Gas shares traded up 2.4% Thursday, after tumbling some 13% over the past two days.