A set of Lebanon’s bond holders are to step up efforts to form a creditor group in the coming days after the country’s presidency signaled on Saturday it would default, one of the members of the group said. Prime Minister Hassan Diab announced later on Saturday that Lebanon cannot meet its forthcoming debt maturities, setting the heavily indebted state on course for a sovereign default. “We think it (creditor group) will come together soon,” the member of the group said, requesting anonymity. “From what we understand the government wants to be reasonable and so do most creditors. They understand the country is in a difficult situation.” So far, the group had been more informal, with distressed debt veterans Greylock Capital and Switzerland-based Mangart Advisors facilitating discussions between bond holders and other interested investors. The group member told Reuters that amid the prospect of a default, potential legal and financial advisors had been sounded out. Lebanon’s government itself has hired investment bank Lazard and law firm Cleary Gottlieb Steen & Hamilton LLP to help steer its efforts. “From what we understand the government wants to be reasonable and so do most creditors. They understand the country is in a difficult situation,” said the group member. “We think if this is approached in a constructive way that something can be achieved.” Diab declared the suspension of a bond payment of $1.2 billion due on March 9, saying foreign currency reserves had hit dangerously low levels and were needed to meet basic needs. Diab said Lebanons public debt had reached around 170% of gross domestic product, meaning the country was close to being the worlds most heavily indebted state.