MANAMA: A notice has been sent out to the certificate holders of the $$650 million trust certificates issued by the Golden Belt 1 Sukuk Company to seek legal advice.

The Sukuk Al Manafa'a, No ISIN XS0296496424, is due in 2012.

The notice was issued pursuant to certain clauses of the declaration of trust and agency, signed on May 15, 2007 between Golden Belt 1 Sukuk Company, in its capacity as issuer and trustee, Citicorp Trustee Company Limited, the trustee, and Saad Trading, Contracting and Financial Services Company (Saad), the Golden Belt 1 Sukuk Company said.

The latest payment of the coupon was made on the due date of May 15 this year. The next payment date is scheduled for November 15 this year.

The notice recommended the certificate holders to seek their own advice from their financial and legal advisers due to the content of recent media reports regarding the financial position of the group of companies controlled by Mr Maan Al Sanea of the Saad Group, it said.

The reports said that a standstill arrangement has been entered into between the Saad Group and certain of its creditors, as well as a regulatory freeze on certain bank accounts of the group and Mr Al Sanea imposed by the Saudi authorities.

Saad is one of the companies in the Saad Group.

The full notice will be made available to the Bahrain Stock Exchange for publication on their website.