English court rules in favour of Dana Gas bondholders in key Islamic bond case

English court rules in favour of Dana Gas bondholders in key Islamic bond case:

"An English High Court judge has ruled in favour of Dana Gas’s bondholders in a high-profile dispute over the validity of $700m Islamic bonds, in what will be seen as a blow for a UAE-based energy company.

Mr Justice Leggatt ruled on Friday that certain terms of the English-law bonds obliging Dana Gas to repay bondholders were valid. The company had argued that the bonds were no longer compliant with Islamic law, leaving it with no obligation to pay.

“All the grounds on which Dana Gas has sought to challenge the validity and enforceability of the Trustee’s rights under the Purchase Undertaking to oblige Dana Gas to pay the exercise price are unfounded,” he said."



'via Blog this'