Jeweller Damas International may reach a standstill agreement with its creditors within three weeks for 3.2 billion dirhams ($871.5 million) worth of debt, a report said.

Dubai's regulator earlier in March ordered the jeweller to dismiss its board and pay penalties after an enquiry found irregularities involving cash and gold.

Damas replaced its chief executive and managing director last year after alleging he made unauthorised transactions worth about $165 million. He denied any wrongdoing.

A standstill agreement has been distributed to around 20 banks that are owed money by Damas, The National reported on Wednesday, citing anonymous sources. Damas wasn't immediately available to comment. - Reuters