Blackstone Group, a private equity giant, has reportedly reached to a deal to restructure debts of its Hilton hotels chain. Blackstone has been in talks with Hilton's lenders to cut its debt for some months. Now the sources said that Hilton's lenders and Blackstone are finalizing a deal.

According to the sources, the deal when finalized would cut about $4 billion of debt at the hotel firm that it totally of $20 billion. Under terms Blackstone will put in $800 million of fresh equity. Blackstone's funds would contribute that $800 million to buy back Hilton's debt at a discount. Also the maturities of some of Hilton's debt will also be pushed back as the sources said.

Blackstone took the debt of $20 billion when the equity firm decided to buy Hilton in a $26 billion deal in July 2007. The acquisition was financed with $20.6 billion of debt and about $5.7 billion of equity. In 2008 when there struck a global economic crisis the hotel market was hit badly as consumers and businesses cut back on travel. While business travel has improved in the past months, it is below levels of 2008 and earlier. This restructuring will help shore up Hilton's finances now.