Dubai World , the indebted state-owned conglomerate, has reached a deal in principal to restructure $23.5 billion, with its core bank creditors, the company said in a statement on Thursday.

The deal, which requires no new support from the government, must still be approved from banks outside the core negotiating committee, the company said.

The proposal, which offers repayment over a five- or eight-year period, allows banks to opt for an option of a higher payment in kind coupon (PIK), a higher government shortfall guarantee, or get a higher cash and PIK coupon.

The conglomerate's plans to delay repayment of $26 billion in debt last November stunned global markets.

(Writing by Amran Abocar; Editing by Thomas Atkins)