By Tom Arnold and David French

DUBAI, Sept 22 (Reuters) - Pacific Controls, a Dubai-based technology company, will submit a proposal to creditor banks on how to restructure its 1.4 billion dirhams ($381 million) of debt by the end of October, sources told Reuters on Thursday.

The company began talks with banks during the summer after hitting problems with its repayments, partly due to delays in payment from some clients as the United Arab Emirates' economy has stumbled over falling oil prices.

Recently appointed chief executive Sanjay Nayak has held talks with the company's clients to get assurances on continuation of payments and contracts, according to two banking sources who spoke on condition of anonymity.

The privately-owned company, which launched in 2000, counts a number of state institutions as customers including Dubai Civil Defence and the Roads and Transport Authority, as well as government-controlled companies such as telecoms firm Etisalat , banks, hospitals and schools.

Pacific Controls declined to comment, but in a statement in July said it was confident of a turnaround.

Negotiations with the banks are being handled through a newly-formed creditor committee made up of seven international and local banks, led by National Bank of Fujairah , two banking sources said.

The committee represents 19 banks, some of whom are part of a 1 billion syndicated loan and others who have lent to the company directly.

Pacific Controls is being advised by KPMG, while the banks have yet to appoint an adviser.

Any deal is likely to involve extending maturities to better align them with the company's cashflow projections, said the first banking source.

A source told Reuters in July that the company had used short-term loans to fund long-term capital expenditure projects. With revenue yet to accrue from these schemes, its cashflow position was then compounded by disruption from delayed payments.

The negotiations are being assisted by a special mechanism set up by the UAE Banks Federation in March to help reach an agreement with the company and mediate between the short and long-term lenders.

The scheme, which was introduced in the absence of an effective insolvency law, has assisted more than 1,700 SMEs and larger companies, covering around 7 billion dirhams of outstanding loans, the federation said this week.

(Editing by Alexander Smith) ((; +97144536265; Reuters Messaging: