UAE: Dana Gas’s Sukukholders would likely face a “significant liability” from the final outcome of the litigation process in the UAE, the natural gas company said when announcing its results for the half-year and second quarter ended the 30th June 2017.
Dana Gas said that it is “pursuing the litigation route to resolve the matter and is confident pursuant to independent legal advice of prevailing in its interpretation of the outcome”.
The board of directors (BOD) of Dana Gas will also file an application to the Sharjah UAE Federal Court to discharge the Sharjah injunction, as ordered by the English High Court. According to an announcement on the results of the BOD meeting held on the 15th August 2017, the compliance was to continue the English court’s injunction restraining the Sukukholders’ delegate.
The natural gas company also said that it will continue to seek ways to settle its dispute with Sukukholders by litigation, the outcome of which will finally determine the unlawfulness, validity and proper accounting of the current Sukuk Mudarabah.
Separately, Dana Gas has submitted an application on the 17th August 2017 to the Sharjah Federal First Instance Court to discharge the injunction granted by the court, according to a statement. The injunction dictates that the trustee, delegate, principal security agent and others are not allowed to take any legal action against the company until the pronouncement of a final judgment by the Sharjah Court.
Dana Gas’s application to discharge the injunction is to fulfill the condition to continue the English Court’s injunction; the English Court had previously ordered Dana Gas to file an application to the Sharjah Federal First Instance Court to discharge the injunction granted by the Sharjah court.