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DUBAI / Reuters
Dana Gas will lift an injunction it obtained in a UAE court protecting it against claims on $700 million of Islamic bonds to comply with a London court order, a source with knowledge of the matter said.
But Dana believes a stay on proceedings in Sharjah will still permit it to resume its legal action there, if it wishes, after a London hearing scheduled for September, the source said on Tuesday.
The case is being closely watched by the Islamic finance industry around the world because it could affect the structuring and pricing of future issues by other companies.
Holders of the sukuk, which Abu Dhabi-listed Dana wants to restructure on the grounds that changes in Islamic finance since they were issued four years ago have made the bonds unlawful in the UAE, have fought the company in the London High Court.
Dana said this week that it remained keen to engage with holders of the sukuk and reach a restructuring agreement.