Blackstone Group has begun talks with lenders to cut up to $5bn (€3.4bn) from the $20bn debt load carried by Hilton Worldwide, as the private equity firm seeks to protect its single biggest investment, according to sources.

The talks are part of a restructuring of corporate debt under way across the economy. Companies hold roughly $1 trillion of senior loans and high-yield bonds that mature before 2015, much of it issued in leveraged buyouts from the middle of the decade. Many of those deals were struck at high valuations, and now owners are trying to fix balance sheets to stave off default.