posted by Christopher W. Holton

Dana Gas dismissed a new proposal from bondholders for the restructuring of US$700 million worth of sukuk, in the latest twist of an acrimonious dispute closely watched by Islamic finance practitioners.

Discussions between Dana Gas and its sukuk holders soured earlier this year, when the company claimed outstanding sukuk, due to mature in October, were not Sharia-compliant, and therefore illegal under UAE law.

Such a contention, and the decision to refer the matter to the talks, has unnerved Shariah finance practitioners in the UAE and the wider Shariah finance community.

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