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Abu Dhabi, UAESunday 24 June 2018

Sabah al-Binali's 1 minute round-up

Dana Gas woes continue

Dana Gas wants to appeal an English court decision related to its $700 million sukuk. Courtesy Dana Gas
Dana Gas wants to appeal an English court decision related to its $700 million sukuk. Courtesy Dana Gas

A quote from Dana Gas from an article from The National this past week: “The final outcome of the ongoing litigations in UAE courts [regarding the sukuk issue by Dana Gas] would likely result in a significant liability for the sukuk holders to repay the company excess ‘on account profit payments’ based on a lawful reconciliation of the matter”.

Translation: Dana Gas not only is refusing to honour their sukuk, but they want to force their creditors to pay back money. A question that comes to mind is: Does this not expose Dana Gas to liability for issuing a sukuk that they marketed as sharia compliant but now is no longer sharia compliant?

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Dana Gas said to see creditors turn debtors as showdown deepens

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Dana Gas defends itself against the question of whether investors would lose confidence in the company by stating: “The fact that share prices have increased significantly over the past three to four months is an indicator that people view Dana Gas positively”.

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Dana Gas says it withdraws offer to sukuk shareholders, to pursue litigation driven outcome

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There is no word on the fact that a single shareholder bought a large percentage of Dana Gas, which clearly contributed to an upward spike in the price by around 60 per cent, in the two weeks before the statement by Dana Gas regarding their intent in invalidating their sukuk.