Abu Dhabi telecoms group Etisalat may sell its stake in Etisalat Nigeria, which has defaulted on a $1.2 billion loan, but wants the company’s debt restructured before it does so, two sources told Reuters on Monday.

Nigeria’s central bank and telecoms regulator on Friday agreed with local banks to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.

Etisalat is due to meet with creditors in Nigeria on Tuesday or Wednesday to discuss the default, the source said.

It was not clear whether Etisalat, which has a 45 percent holding in Etisalat Nigeria after converting a loan to equity in February, would divest completely.

The proposed meeting this week will be centred on how the telco and the banks will plan the loan payment, Daily Trust learnt in Abuja yesterday.

A top government source in Abuja disclosed that Etisalat is asking for more time to pay the loan, the request, which the banks may likely consider, the source said.