Some 70 per cent of creditors to state-owned conglomerate Dubai World have agreed, subject to approval, to the revised terms of the debt restructuring presented at a meeting in London on Monday, sources with direct knowledge of the talks said.

The entity has been in talks with some of its lenders to extend the maturity of the largest single repayment under a $25 billion debt restructuring agreement struck in 2011, with a series of incentives offered in exchange.

The plan requires the approval of 67 per cent of the creditors to use a local law called Decree 57, which was brought in to help facilitate the original restructuring.

However, if 75 per cent approval is reached, it could use the more rapid UK scheme of arrangement, which will force the rest of the creditor group to accept the new terms, the sources said.

The loans comprise a $4.4 billion term loan that is scheduled to mature in May 2015, and a $10.3 billion term loan that matures in 2018. The plan proposes to increase the interest margin on the larger loan to 425 basis points (bps) over Libor from 300 bps, with the maturity extended to 2022, the sources said.

The plan also proposes to repay in full the $4.4 billion loan. The repayment will be partially funded by the $2.6 billion sale of Dubai World's EZW logistics infrastructure firm to DP World which was agreed last month.

"Everyone thinks it's a good deal, the feedback from the funds and the banks was positive," one of the sources said.

Blackstone is advising Dubai World on the restructuring. Blackstone declined to comment. Dubai World also declined to comment.

A second meeting is scheduled to take place in Dubai on Dec. 8 to put the debt proposal to creditors. – Reuters