October 4, 2017 / 3:20 PM / in a year

UAE court postpones judgment at Dana Gas sukuk hearing - source

DUBAI, Oct 4 (Reuters) - A judge at a United Arab Emirates court has postponed a ruling on whether $700 million of Islamic bonds issued by Dana Gas are valid, a source close to the matter said on Wednesday.

In a dispute with potential implications for issuers and holders of Islamic debt around the world, Dana is refusing to make payments on the sukuk, which will mature this month. It argues that changes in Islamic finance over recent years have made the bonds unlawful in the UAE.

A court in the emirate of Sharjah held its first hearing of the case on Tuesday and the judge then decided to reserve his judgment, the source said. It was not clear when hearings might resume.

The postponement means the next major development in the dispute may occur in a London High Court, where fund manager BlackRock and Deutsche Bank, representing sukuk holders, have been arguing against Dana.

In late September, High Court judge George Leggatt said he would adjourn the London trial until Oct. 12. (Reporting by Davide Barbuscia; Writing by Andrew Torchia; Editing by Mark Potter)

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