Dana Gas saw its share prices nosedive 4.17 per cent on Sunday to reach 0.69 fils, following Friday’s sukuk ruling, which saw the English High Court rule against Dana Gas and in favour of bondholders. The Sharjah-based company said on Sunday it plans to appeal the decision by the London court that declared the company’s $700 million Islamic bonds valid and enforceable.
Dana Gas had said earlier this year that it will not be repaying debt owed to investors for two mudaraba sukuk worth $350 million each, as the company no longer considered its sukuk Sharia-compliant.
Friday’s ruling was made in Dana Gas’s absence from the court.
In a statement on Sunday to the Abu Dhabi bourse, where Dana Gas is listed, the company described the UK trial and decision as “flawed” as the court refused to adjourn handing its judgement until the company’s application to allow it to appear in the English Court to fully state its case.
“There remain fundamental critical legal issues under UAE law relating to the legality and validity of the Mudarabah Agreement, which remain before the Sharjah Court and need to be determined,” Dana Gas stated.
The latest ruling does not mean that Dana Gas has to pay bondholders just yet, with another hearing in a UAE court scheduled for December 25.