(The Wall Street Journal) -- Creditors in the $7bn (€4.75bn) structured investment vehicle formerly known as Cheyne Finance are moving closer to a deal that would allow them to avoid being forced to realise hundreds of millions of dollars of potential losses in the short term, people familiar with the situation said.

The proposed deal would involve transferring the assets to a new vehicle, with senior creditors being offered the opportunity to refinance their debt into longer-term instruments or to take a discounted cash pay-out, the people said.