Banks who lent money to Dubai World, the debt-laden state investment group, reportedly plan to appoint auditors KPMG to represent them in talks over recovering their money.
British newspaper The Independent reported that the banks include HSBC, Royal Bank of Scotland, Lloyds Banking Group, and Standard Chartered.
The banks’ total loans to Dubai World exceeds US$ 30 billion.
It added that KPMG will be formally appointed once the creditor banks have created a steering committee comprising five or six of the main lenders to lead the negotiations.
KPMG was not immediately available to comment.
Dubai said last week that it would delay payment on debt issued by Dubai World and property developer Nakheel, igniting fears over sovereign debt defaults and sending global markets sharply lower.
Dubai World and Nakheel have oustanding debt of US$ 59 billion.