Creditors tell High Court that Dana Gas sukuk get-out is "absurd"

Creditors tell High Court that Dana Gas sukuk get-out is "absurd":

"A claim by Dana Gas that it does not have to pay back its Islamic bonds because they are no longer sharia-compliant is “absurd” as repayment under such a scenario is covered in the original paperwork, creditors told a London High Court. United Arab Emirates energy producer Dana Gas said in June that its $700 million sukuk were unlawful and unenforceable under UAE law and began proceedings to have this confirmed in British and UAE courts, because while the purchase undertaking part of the sukuk is regulated by English law, the “mudarabah” agreement underlying it is regulated by UAE law. Mudarabah is a sukuk structure which resembles an investment management partnership."



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