UPDATE 2-UK court finds for Dana Gas creditors in $700 mln Islamic bond case

UPDATE 2-UK court finds for Dana Gas creditors in $700 mln Islamic bond case:

"A London High Court judge has ruled in favour of creditors in a dispute over whether United Arab Emirates energy company Dana Gas must repay $700 million of Islamic bonds. Dana Gas had said it was under no obligation to pay bondholders because of changes in Islamic finance, but Judge George Leggatt ruled that the company’s challenges to the purchase undertaking behind the bonds were “unfounded” and that the agreement was “valid and enforceable”. The case, which Dana said it would continue to fight in Britain and the UAE, is being closely watched by the global Islamic finance industry because some investors think it could set a precedent for other issuers of Islamic bonds, or sukuk, to refuse to redeem the debt at maturity."



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