Sunday 16, July 2017 by William Mullally

UK Court continues injunction in favor of Dana Gas regarding Sukuk

The Company remains keen to engage with Sukukholders and to reach an agreement on a consensual basis. This is not prevented by the injunctions in place.

Dana Gas has updated the market on the favourable results of legal proceedings related to its injunction in the United Kingdom, in line with disclosure requirements. On 16 June 2017, the Company filed a pre-emptive lawsuit in the High Court of Justice in London, United Kingdom, to protect its interests against any adverse action in connection with its Sukuk Al- Mudarabah by representatives of the Sukukholders.

The Court previously granted the Company an interim injunction restraining the said representatives (Trustee, Delegate and Security Agents) from taking any such actions. As previously disclosed, the Company has already obtained similar injunctions in the UAE and BVI courts.

On 4 and 5 July 2017, a further UK High Court hearing was held to consider whether or not the interim injunction it obtained on 16 June 2017 should be continued. Dana Gas succeeded on all the legal arguments upon which it relied, and the Court continued the injunction, until a trial scheduled for September 2017.

The English Judge found, on the two key tests for the continuation of an injunction under English law, that Dana Gas has a “seriously arguable case” and that the balance of justice was in favour of the Company. Dana Gas was also not required to fortify the injunction. In connection with the injunction order, the Judge ordered that Dana Gas make certain undertakings, including to have the similar injunction issued by a UAE Court lifted as against the Delegate and Trustee and to stay the legal proceedings there until the outcome of the UK trial, in order to avoid duplication in multiple jurisdictions.

The Company remains keen to engage with Sukukholders and to reach an agreement on a consensual basis. This is not prevented by the injunctions in place.

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