DUBAI: A Dubai-based gold and jewelry retailer that defaulted on loans worth about AED500 million ($136 million) has asked banks for time to put together a repayment plan, the company said.

Officials of Atlas Jewellery, which has more than 50 branches across the Gulf and India, had a meeting with representatives of its creditors on Wednesday, three banking sources said.

“We assured the banks we will pay all the debts,” Shyam Mohan, Atlas spokesman, said.

“We will present two or three options to banks who will select what is best for them.”

It is the latest scandal to hit the jewelry business in Dubai.

The Atlas default affects at least 15 banks, sources said this week, and two bankers said reaching a deal would be tricky unless creditors can meet its founder, M. M. Ramachandran, who remains in police custody.

Ramachandran was arrested on Aug. 23 in cases relating to suspected bounced cheques.

“(Atlas) will be outlining their repayment plan within a week. We have to wait to see that,” one banker said.