Dubai World on the verge of Technical Default as it Seeks to Delay Debt Payments

Dubai World, with $59 billion of liabilities, is seeking to delay debt payments of $3.52 billion of Islamic bonds due on December 14 from its property unit Nakheel . Moody’s Investors Service and Standard & Poor’s cut the ratings on several state companies, saying they may consider a default. Deloitte will be working with state-controlled companies on restructuring the debts. Dubai may have to again rely on Abu Dhabi, the capital of the U.A.E. and holder of the world’s sixth-largest crude oil reserves, for a bailout similar to one in February for a $10 billion.