Zabeel Investments is in talks with creditors to restructure $1.63 billion in debt, according to a newspaper report on Wednesday.
The company is discussing extending debt maturities, as well as asset sales and a potential injection of capital, The National said citing financial sources in the emirate.
Zabeel has already missed some repayment of loan principals, although it has managed to meet most interest payments, one source said. Most of Zabeel's liabilities are bilateral arrangements with local banks, the paper reported.
The company was not immediately available for comment.
Emirates NBD, Union National Bank and Commercial Bank of Dubai are among the local creditors to the firm, while HSBC is the sole international bank involved with the discussion, the paper said.
A deal may be signed towards the end of the month, according to the paper. Zabeel is a privately-owned company with stakes in the Jumeirah Zabeel Saray hotel and the Tiara Residence on the Palm Jumeirah. In 2007, it invested in Abraaj Capital, the region's leading private equity firm.