Dubai – Mubasher: London High Court on Friday ruled in favour of the sukuk holders in Dana Gas’ $700 million-sukuk case.

“All the grounds on which Dana Gas has sought to challenge the validity and enforceability of the trustee’s rights under the purchase undertaking to oblige Dana Gas to pay the exercise price are unfounded,” the judge said, according to Reuters.

In June, the company announced that the $700 million sukuk were not compatible with the Islamic Sharia and illegal in the UAE.

Dana Gas will appeal the court ruling, and the court proceedings in the UAE regarding the validity of the sukuk will continue, an informed source told Reuters.