Reports and sources have speculated that Balckstone Group, the private equity giant, has managed to reach an agreement to restructure the debt of its Hilton hotels chain.

All thanks to the agreement with Hilton's lenders, the group would now be able to pull down nearly $4 Billion (2.6 Billion Pounds) of debt at the hotel firm.

Private equity companies have been busy struggling to keep debt-ridden portfolio firms healthy, as the financial meltdown managed to take a toll on employment and demand for services.

The $26 Billion deal to purchase Hilton was reached at when the buyout bubble with at its peak in July of 2007, and it was financed with $20.6 Billion of debt and nearly $5.7 Billion worth of equity.

The hotel industry was, however, badly hurt during the recession with customers and businesses cutting back on travel, and although the travel scenario has managed to improve over the months, it is still way below the 2009 level.