Dana Gas denied appeal to English High Court order to join BlackRock

By Susanna Moon

Chicago, Dec. 18 – Dana Gas PJSC said that the English Court of Appeal has refused its application to appeal the English High Court order to join BlackRock to the English court proceedings and to proceed with the trial in Dana Gas' absence.

The company is proceeding with an English Court application to set aside the English High Court judgment dated Nov. 17 on the grounds that the company was unable to represent itself in court due to the continuance of a mandatory injunction, according to a press release issued Monday.

If that application is unsuccessful, the company said it will be seeking permission to appeal the Nov. 17 judgment.

If the application is successful, the preliminary issues will be reheard by the English High Court in a three-day hearing beginning Jan. 30. Other consequential issues will also be heard by the court at that time, including applications for the discharge of the BlackRock anti-suit injunction, which prevents Dana Gas from pursuing legal proceedings in Sharjah, and the injunction order of HHJ Waksman dated July 5, which prevents the parties from taking enforcement action under the purchase undertaking.

“There remain numerous legal issues under UAE law relating to the validity of the mudarabah agreement which remain before the Sharjah UAE Federal Court and need to be determined,” the release noted.

“The company will take such steps as it can to have the UAE proceedings dealt with as quickly as possible. The company hopes that the trustee, the delegate, BlackRock and all the other parties will now properly participate to expedite the hearing of the sharjah proceedings in the interest of all concerned.”

Dana had said on Dec. 4 that the English Appeal Court had lifted the anti-suit injunction to allow the company to appear before the U.K. court and pursue appeals against the English Court's decisions to join BlackRock.

On Dec. 2, the Sharjah Court of Appeal allowed the appeal of Dana Gas against the anti-suit injunction issued by the Sharjah Court of First Instance on Sept. 17, which had restrained the company from taking part in legal proceedings in the English Court relating to the company's sukuk.

As announced Oct. 13, the issuer requested permission from the English Appeal Court to appeal two previous English High Court decisions related to the legal dispute over the company’s sukuk Al Mudarabah.

Dana said it applied for permission to appeal a Sept. 22 decision that allowed BlackRock to join the English legal trial.

The company said BlackRock is a sukukholder and is a self-appointed member of an informal committee acting on behalf of the sukukholders.

Under the terms of the agreed sukuk contractual arrangements, Dana said all sukukholders are expressly prohibited from pursuing a claim in relation to the purchase undertaking or under the sukuk Al Mudarabah.

After the ruling, Dana also now may proceed with the U.K. trial where before it was restrained by Sharjah Court order from taking part and the decision of the English Court that the purchase undertaking is valid under English law.

The first hearing of the United Arab Emirates proceedings brought by the company challenging the validity of the sukuk under UAE law is scheduled for Dec. 25. The company is restrained from progressing with those proceedings because of an anti-suit injunction issued by the English High Court at the instigation of BlackRock, the release noted.

The company said it “will be taking steps to apply to have the English High Court lift the BlackRock anti-suit injunction” before Dec. 25 so that it may appear before the Sharjah Court to present its case.

The company said it “remains of the view that the dispute between the parties as to the validity of the sukuk cannot be finally resolved without the UAE courts determining important matters of UAE law which governs the mudarabah agreement, being the umbrella agreement of the sukuk, and that the best interests of all parties will be served by all parties co-operating to ensure that the UAE proceedings can proceed and be determined in a straight forward manner without unnecessary delay as soon as possible.”

Dana announced on Nov. 20 that the English Appeal Court has ruled that the “purchase undertaking is valid and enforceable.”

The “U.K. 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 Nov. 29 (within sixteen days),” the company previously said in the press release.

Dana previously said the Sharjah court issued this anti-suit injunction at the request of and in response to the action by several of its shareholders, who sought to have the UAE law matters decided by the Sharjah court.

Dana Gas is a private sector natural gas company based in Sharjah, the United Arab Emirates.

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