Glorified rollovers

Author: | Published: 27 Oct 2009

For much of the past year, talk in the Gulf has been about how restructurings in the Middle East would work out. Would shariah law be able to adapt for reorganising Islamic deals? Would local law cope with the influx of new cases and untested legislation? Well, the results have been largely uninteresting.

There have been defaults, notably the Investment Dar sukuk that has sparked a debate about how the Islamic bonds are structured. It turns out, according to lawyers advising the creditors, that all the sukuk...