Dubai International Capital (DIC), the private equity arm of the investment vehicle owned by the ruler of Dubai, has asked creditors for a further delay in repaying a $1.25 billion loan until the end of November, two people familiar with the situation said.

DIC, part of Dubai Holding, and which has around $2.6 billion in debt - also presented an outline of a debt restructuring plan that includes asset sales over a period of five to seven years, one of the two people said.

'The reason (for the delay) is to give more time to implement the restructuring plan,' the other source said.

DIC had already extended the $1.25 billion loan, which matured in June, to September 30. The firm's spending spree during the boom years nabbed it a series of high profile overseas assets such as UK hotel chain Travelodge, Madame Tussauds and Doncasters.

'It (DIC) needs overall asset values to increase again. Everything is on the table but it won't be a fire sale,' said one of the two people familiar with the situation.'Will they ever increase to the point at which they were bought? We will see,' the person added.

UK bank HSBC and local lender Emirates NBD are co-chairing the committee leading the talks between creditors and the company. Investment bank Lazard is advising DIC, the person added.

The extension follows an announcement from Dubai Holding unit Dubai Holding Commercial Operations Group (DHCOG), which on Sept 7 delayed repayment on a $555 million loan until November 30.

Neither Dubai Holding nor DIC were immediately available to comment. On September 10, Dubai World, another state-controlled business, reached a deal with 99 per cent of its creditors to restructure nearly $25 billion in debt.-Reuters