Dana Gas: Appeal on BlackRock joining sukuk trial rejected

DUBAI / Reuters

The English Court of Appeal has refused an application by Dana Gas to appeal a decision allowing fund manager BlackRock to participate in English court proceedings over Dana’s $700 million of sukuk, Dana said on Monday.
Dana is refusing to redeem its Islamic bonds on the grounds that they are no longer sharia-compliant and have therefore become unlawful in the United Arab Emirates. Courts in both Britain and the UAE are hearing the case. The English High Court ruled in favour of sukuk holders on Nov 17, deciding that purchase undertaking, part of the sukuk’s contractual framework, was valid and enforceable. A committee of sukuk holders said in Nov, after the English court ruling, that it hoped to reach an agreement on restructuring the sukuk through negotiation.

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