London High Court judge rules in favour of creditors in $700 million Dana Gas sukuk case

A High Court judge in London on Friday ruled in favour of creditors in a case over the validity of the purchase undertaking for about $700 million (£530.3 million) of Islamic bonds issued by the UAE’s Dana Gas (DANA.AD), a copy of the ruling seen by Reuters showed.

The judge said that Dana Gas’ challenges to the validity, enforceability of the purchase undertaking are “unfounded” and declared the purchase undertaking for Dana’s sukuk as valid and enforceable.

The case is being closely watched by the global Islamic finance industry because some investors think it could set a precedent for other sukuk issuers.