IslamicFinance.de

Dana Gas obtained an injunction from the English High Court of Justice in London restraining sukuk holders from taking any hostile action against the company. The company obtained similar injunctions from the Sharjah Federal Court of First Instance in the United Arab Emirates as well. Dana Gas announced last week that its outstanding $700 million sukuk were not sharia-compliant and were therefore unlawful in the UAE. The company said it would therefore halt coupon payments on the sukuk, and proposed exchanging the sukuk for new Islamic bonds with lower profit distributions.