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 $700m 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 November 17, deciding that the purchase undertaking, part of the sukuk’s contractual framework, was valid and enforceable.
Dana said on Monday that it still planned to apply to have the November 17 judgement set aside on the grounds that the company was not permitted to represent itself in court, after some of its shareholders obtained an injunction preventing its participation.
Regardless of the result of that application, additional legal proceedings in England are expected, the company said. It also said it would do what it could to have court proceedings in the UAE completed as soon as possible.
A committee of sukuk holders said in November, after the English court ruling, that it hoped to reach an agreement on restructuring the sukuk through negotiation. Dana’s statement on Monday did not mention such a possibility.