dubai ready to default?, page-4

Hey,

I have been reading abit into it. Dubai is in a situation in which it can't make interest payments on its loan obligations. However, this is an active choice by thier government, here is some news casts I have been reading from Morgan Stanley Research Center:-

"The group absolutely refused in the last few months to
sell a number of good investment and property assets at low
prices," al-Ittihad newspaper said, quoting a source at Dubai World, the holding company at the centre of Dubai's debt crisis."

Last Wednesday, the government of Dubai asked to delay
payment on billions of dollars of debt issued by conglomerate
Dubai World and its main property subsidiary Nakheel, as it
restructured the Dubai World group. [ID:nGEE5A02FN]

The restructuring is expected to focus on property and
foreign investments which have been worst hit by the economic
crisis, the source said.

"Asset sales should be commercially fair to meet the group
long-term strategic goals, beyond the immediate economic
pressures," the source added."