19/09/2017 14:44 AST

A London court case over $700 million in Shariah-compliant bonds issued by Dana Gas PJSC was derailed as lawyers said judges in the United Arab Emirates issued an order blocking the trial.

Dana Gas stunned investors and the Islamic finance community when it announced in June that it had reviewed its own bonds and found they were not, in fact, Shariah compliant. Bondholders, led by Goldman Sachs Group Inc. and BlackRock Inc., hired investment bankers and then lawyers when it became clear they were facing losses of 90 percent or more.

But Tuesday, on the first day of the trial, lawyers said an order issued by a court in the U.A.E. days earlier prevented Dana from participating in the London case. BlackRock’s attorneys said the ruling was a last-minute tactic to halt the proceedings.

"Dana deliberately frustrated and colluded” to obtain a ruling in the U.A.E. city of Sharjah “to prevent these proceedings," Robert Anderson, a lawyer for BlackRock told a London judge Tuesday.

Neil Kitchener, Dana’s lawyer, said that the U.A.E. order effectively halted the London case because it would not be possible to have a trial without the energy producer, which is based in the Middle-Eastern country.

While Judge George Leggatt said that the trial won’t be starting today, BlackRock pushed for the proceedings to resume as soon as possible.

"The court should proceed now to decide the English law questions which are discreet," said Richard Handyside, another BlackRock lawyer. "It is simply too important and too much money to kick it down the road."

The case is Dana Gas PJSC v. Dana Gas Sukuk, High Court of Justice, Queen’s Bench Division, Commercial Court, Financial Listings, FL-2017-000375


Weeks of talks ‘fail to resolve Dana Gas sukuk dispute’


Weeks of talks between UAE energy firm Dana Gas and some local holders of a disputed $700 million sukuk have failed to reach an agreement, sources told Reuters, leaving a potentially protracted legal

Arab News

Dana Gas' Sharjah Dec 25 court hearing adjourned, spokeswoman says


Dana Gas, the Sharjah-based energy company currently embroiled in court battles over the legality of its US$700 million sukuk issuance, has had its December 25 hearing at a Sharjah court adjourned, a

The National

Dana Gas's application to appeal English high court order rejected


Dana Gas, the Sharjah-based energy company embroiled in court battles over the legality of its US$700 million sukuk, said on Monday the English court of appeal rejected the company’s application to a

The National

Ticker Price Volume
QNBK 136.00 231,900
JAZIRATKFL 26.86 534,258
SABIC 106.55 1,939,269
WALAA 34.99 574,653
SAICO 19.41 1,501,906
SAAC 8.14 741,166
PETRORABIGH 20.69 2,507,924
DANA Sector Market
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
PETRORABIGH 20.69 -0.21 (-1.01%)
BAHRI 30.40 0.01 (0.03%)
TAQA 0.56 0.00 (0.00%)
ALDREES 25.40 -0.09 (-0.36%)
SARCO 32.08 -0.07 (-0.22%)
Goldilocks announces 4.99 per cent stake in GFH


Goldilocks Investment Company Limited (Goldilocks) today announced its current holding of a 4.99 per cent stake in GFH Financial Group BSC (GFH).

Goldilocks supports GFH’s long term growth

CPI Financial

Dubai’s Emaar unveils new island development


Dubai developer Emaar has revealed a new master-planned island development as part of the Dubai Harbour project.

The 10 million-square-foot Emaar Beachfront will feature 1.5km of beach and

Gulf Business

DIB named ’Fastest Growing Bank in the UAE’ by IFM


Dubai Islamic Bank, DIB, has been recognised as the Fastest Growing Bank in the country at this year’s International Finance Magazine Awards.

Organised for the fifth consecutive year, the


Saudi Electricity secures $2.6bn bridge loan facility


Saudi Electricity Company (SEC) said it has signed a SR9.75 billion ($2.6 billion) international syndicated bridge facility with eight major global banks to fund its future plans including that of a

Trade Arabia

Saudi's Almarai Q4 profit down 4.3 pct, competition pressures prices


Saudi Arabia’s Almarai, the Gulf’s largest dairy company, reported a 4.3 percent decline in fourth-quarter profit on Sunday due to tough market conditions that prevailed throughout 2017, missing some