Islamic Finance

UAE’s Dana Gas gets injunction from English court blocking claims on $700 mln sukuk

| 18 June, 2017
UAE’s Dana Gas gets injunction from English court blocking claims on $700 mln sukuk
Photo: A view shows UAE's Dana Gas building in Cairo November 2, 2012. REUTERS/Mohamed Abd El Ghany

Sun Jun 18, 2017 | 7:39am BST

Dana Gas said on Sunday it had obtained an injunction from the English High Court of Justice in London restraining holders of its $700 million of sukuk from taking any hostile action against the company in relation to the Islamic bonds.

Last week, the company obtained similar injunctions from the Sharjah Federal Court of First Instance in the United Arab Emirates and from the Commercial Division of the High Court of Justice in the British Virgin Islands.

The Abu Dhabi-listed energy company announced last week that its outstanding sukuk were not sharia-compliant and were therefore unlawful and unenforceable in the UAE.

The company said it would therefore halt coupon payments on the sukuk, and proposed to its creditors exchanging the sukuk for new Islamic bonds with lower profit distributions.

A committee of sukuk holders said last week that the company’s decision to halt payments was a “repudiation” of the English law under which the instruments were issued.

(Reporting by Davide Barbuscia; Editing by Andrew Torchia)

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