Fortress Investment Group is deep in discussions with lenders to refinance a critical $1.6bn (€1.14bn) loan on real-estate and railroads company Florida East Coast Industries, according to people familiar with the talks. There is only one wrinkle: One of those lenders happens to be Fortress Investment Group.

New York-based Fortress, a private-equity and hedge-fund firm with $26.5bn in assets under management, has until July 27 to work out a plan, when the loan matures and Florida East Coast must pay back the amount. People involved in the negotiations say that the company wants to extend the loan, and that it is expected to reach an accord that will delay the maturity and increase its interest rate.