MANAMA,(Reuters) – Saad Trading, Contracting & Financial Services on Sunday said the Golden Belt 1 Sukuk Company was unable to make a periodic payment as scheduled on a $650 million sukuk due in 2012.

Saad Trading, Contracting & Financial Services said in a statement posted on the Bahrain stock exchange that “due to matters beyond its control, it is currently impossible for the issuer to perform its payment obligations under the sukuk.”

“Freezing orders in Saudi Arabia and other jurisdictions have rendered impossible the ability of Saad Trading, Contracting & Financial Services to perform its payment obligations under the lease agreement and hence making it impossible for the issuer to pay the certificate holders,” the statement said.

“The Saad Group continues to exert every effort through the relevant legal processes to resolve these issues to be able to perform its obligations towards its creditors, including to the issuer and the certificate holders,” the statement said.

“We invite the certificate holders to refrain from proceeding with any legal action, in order to avoid further complication and expense and so improve the chances of reaching an amicable solution, as we are committed to working with our creditors on a fair settlement once such freezing orders are lifted,” the statement said.