The investment firm also asked to defer an increase in the rate of interest, starting in December, and waive or defer certain covenants applicable to Global under its debt arrangements, according to a statement from the firm.

Evercore Partners has been appointed by Global to advise it in the restructuring process, a source with knowledge of the move said on condition of anonymity.

A creditor committee which will liaise with the Kuwaiti firm on behalf of the bank group was also set up at a meeting, which took place in Dubai today between Global and its banks.

Global has so far repaid around $200 million under the existing debt plan, which was signed in 2009, the source added.

However, with $1.5 billion still to be repaid and volatile market conditions making it difficult for banks to make money, Global has taken the step to complete "a more comprehensive restructuring of Global's debt obligations".

The existing restructuring, which Global agreed with 53 local and international banks in 2009, set a tough timetable for the firm and bankers have long expected a further restructuring would be necessary.

Copyright Reuters, 2011