“Dana Gas confirms that its discussions with the Committee of the Sukukholders are progressing positively, and that the company and the Committee are currently negoitating the necessary standstill and lock up agreement which the parties are working togehter to conclude soon,” reads the latest statement to the Abu Dhabi Securities Exchange.

It follows a statement issued by the London-listed Sukuk vehicle, Dana Gas Sukuk Limited, on Monday, 5 November that said, “We hereby advise that a Dissolution Event has occurred pursuant to Conditions 13 (a) and (c) (Dissolution Events) of the Certificates.

“This Notice is issued pursuant to Conditions 16 (Notices) of the Certificates.

“We hereby request the Certificateholders to confirm whether they wish for the Trust to be dissolved.”

Stipulating a Dissolution Event is a legal move that leaves the Sukukholders with two options – either to liquidate the bond and claim the underlying assets, or to agree to restructure the Sukuk with the aim of a more attractive return than liquidation.

Sharjah-based Dana Gas has the dubious privilege of being the first UAE-based concern to fail to repay a maturing bond, whether conventional or Islamic. So far there has been no comment from any of the Sukukholders involved.