DUBAI (AFP) - Dubais embattled group Dubai World , whose default fears had rocked global markets, Thursday said it reached agreement in principle with most of its bank lenders to restructure some 23.5 billion dollars in debt. The agreement still needs the backing of other lenders but appears to give the heavily-indebted Dubai some breathing space in dealing with the obligations of its state firms. Dubai World is pleased to announce that headline economic terms have been agreed in principle with the Coordinating Committee representing 60pc of the groups bank lenders, the co said in a statement. According to the agreement, the company will divide 14.4 billion dollars of debt into two tranches, maturing in five and eight years respectively, while the government will convert 8.9 billion dollars of aid to the company into equity. The first tranche of debt will be valued at 4.4 billion dollars and will bear 1.0 percent interest with no government shortfall guarantees, while the second will be worth 10 billion dollars, bearing also 1.0pc interest plus varying options of payment in kind and shortfall guarantees, it said. It also said that the govt was committing up to $500m of Selling, General and Administrative (SG&A) expenses, in addition to an interest facility of up to $1.0b.