DUBAI (Zawya Dow Jones)--Creditors for a $650 million sukuk issued by troubled Saudi conglomerate Saad Group failed to vote in a meeting last week on whether to dissolve the Islamic bonds and get a payout, a banker familiar with the matter told Zawya Dow Jones.

No decision was taken at the gathering held in London on a proposal to appoint Citicorp Trustee Company Ltd., a unit of Citigroup Inc (C) to act on the behalf of investors or vote on whether to dissolve the Golden Belt 1 sukuk as not all creditors were present, the banker said.

Citi declined to comment on the matter when called Wednesday as did a spokesperson for Saad in London.

Saudi Arabia's Sanea family faces cash-flow problems at Saad Group and some of its subsidiaries and is being forced to restructure raising concern over the possibility of massive loan defaults.

A conference call will now take place on July 6 for certificate holders to again discuss the sukuk, according to a disclosure by Citicorp Trustee Company posted on the Bahrain Stock Exchange. The statement does not say whether a vote will be taken.

The sukuk was issued in 2007 by Saad Trading Contracting & Financial Services Co. on behalf of Al-Khobar-based Saad Group. The Islamic bond matures in 2012.

The order-book for the sukuk reached $1 billion within two days, with European investors subscribing to 46% of the issue, the largest amount, according to a BNP Paribas statement at the time.