Dana Gas, a Sharjah-based energy firm, said it will challenge a ruling by a London court, enforcing the legality of the company’s US$700 million sukuk as the judgement issued on Friday was "flawed".
Dana is arguing that its Islamic bond has ceased to be shariah-compliant, following developments in the Islamic finance and therefore it is not obliged to repay the debt to creditors including the New York-based BlackRock, the world's biggest asset manager.
"Dana Gas reaffirms its belief that the UK trial and decision is flawed as the court refused to adjourn handing down its judgment until the company's application to allow it to appear in the English Court to state its case fully and properly has been decided by the Sharjah Court on November 29 (within sixteen days)," Dana Gas said in a statement to the Abu Dhabi stock exchange, where its shares are traded.
"The company has already appealed to the English Court of Appeal the decision of the English High Court to join BlackRock and to proceed with the case in Dana Gas' absence. The company will also appeal against [Mr Justice] Leggett's Friday judgment made in its absence."
________
Read More:
Dana Gas loses Islamic bond court battle
Exclusive: Dana Gas ready to import Iranian gas if supplies are 'reliable'
________
Dana Gas said there remained critical legal issues under the UAE law, which pertains to the legality and validity of the Mudarabah agreement, a form of Islamic financing.
The saga began after Dana Gas secured $850m from international investors in May 2013. It followed the restructuring of an earlier $1 billion deal that had been due to mature in 2012 because of payment delays from operations in Egypt and the Kurdish region of Iraq.
Mr Justice Leggatt ruled against the company on all counts on the legality of the sukuk, nearly three weeks after bond-holders were due to get their money back or secure stock of a subsidiary that runs its operations in Egypt.
The verdict in favour of the bondholder group does not mean immediate payment. The company has previously warned that litigation could last for a decade whatever the outcome of the London hearing and said that it would appeal Friday’s judgement.
The bondholder group, led by Blackrock called on the company to strike a deal.
“This outcome vindicates the position we have taken from the start,” said Andrew Wilkinson on behalf of the group. “We hope Dana will now come to the table to discuss possible consensual solutions,” said in London.
High profile Al Shabab attacks
- 2010: A restaurant attack in Kampala Uganda kills 74 people watching a Fifa World Cup final football match.
- 2013: The Westgate shopping mall attack, 62 civilians, five Kenyan soldiers and four gunmen are killed.
- 2014: A series of bombings and shootings across Kenya sees scores of civilians killed.
- 2015: Four gunmen attack Garissa University College in northeastern Kenya and take over 700 students hostage, killing those who identified as Christian; 148 die and 79 more are injured.
- 2016: An attack on a Kenyan military base in El Adde Somalia kills 180 soldiers.
- 2017: A suicide truck bombing outside the Safari Hotel in Mogadishu kills 587 people and destroys several city blocks, making it the deadliest attack by the group and the worst in Somalia’s history.
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
