Saudi Arabia's Jabal Omar Development Company is in talks with creditors after failing to make the first repayment, worth SR650 million ($173.29 million), on a SR3 billion state loan on January 1, the property firm said on Sunday.

In a bourse filing, the company said its sustainability depended on finding funds to repay short-term debts. The company has long-term debt of more than SR8 billion.

The developer, whose projects are mainly located in Makkah's Jabal Omar district near the Holy Mosque, said it plans to use a SR900 million credit facility from a local bank to cover the repayment. The facility has SR751 million remaining.

It said the terms of the government loan allow land put up by Jabal Omar as collateral to be sold by the lender.

Jabal Omar's shares, which slumped to a 21-month low in mid-January, were up 0.2 percent as of 0916 GMT, underperforming Saudi Arabia's main stock index, which rose 3.5 percent.  - Reuters