Bahrain’s Gulf Finance House (GFH) has agreed with a group of 32 banks to extend the repayment date of part of a $300m loan, by six months.

The loan was due on 10 February, and just days away from the maturity date, GFH told its lenders it could only afford to repay $200m and needed an extension on the remaining $100m.

The terms of the extension have not yet been disclosed, but bankers say the pricing on the debt has been increased as a result of the extension.

The original $300m deal was put in place by Germany’s WestLB in 2007.

The extension was granted on 10 February. GFH’s request to extend the facility resulted in the firm being downgraded to CC by credit ratings agency Standard & Poor’s (MEED 3:2:10).