Dubai World is expected to approach lenders for the first time this week with a suggested proposal for restructuring $22bn of its debts, according to people close to the situation.

The conglomerate has called leading -creditors to London for meetings starting as early as today.

Bankers expect the one-on-one meetings to reveal the first details of a formal proposal, which the government has said should be finalised in March.

The plan, which may be an initial outline, is expected to offer lenders an option to be repaid over several years but with a “haircut”, or to be repaid more over a longer term, potentially with a government guarantee. However, people close to the situation say nothing is certain. Some are concerned that the proposals could lead to a split of the creditor groups, further complicating the process. “There is a real problem [creditors] will fragment into a number of splinter groups,” said one person close to talks.

The restructuring is expected to involve an injection of fresh funds. [Read More]