The timeline so far

Dubai World originally entered a $5 billion investment deal with MGM in August 2007, through which it received 50 percent of CityCenter, and a 4.5 percent stake in MGM.

In December 2007, Dubai World increased its stake to 6.5 percent after it bought shares from majority investor Kirk Kerkorian.

In January 2008, MGM and Dubai World announced that the latter would increase its stake to about 8.4 percent. The stake later reached 9.4 percent.

In August 2008, Dubai World was also granted permission by New Jersey regulators to own up to 20 percent in MGM.

Last February, Bloomberg reported that MGM and Dubai World were in talks with Deutsche Bank for a $1.2 billion loan to complete the CityCenter project.

In spite of its financial troubles, the casino company announced on March 17 2009 that it will finish the CityCenter on schedule. And once it opens in December, cash flow from the project will exceed potential savings from postponing construction insisted MGM Mirage CEO James Murren, reports Bloomberg.

What next

While Dubai World has said that it is interested in completing the project, it remains to be seen how the lawsuit against its partner will affect the future of CityCenter. For one, it has certainly spoiled relations and trust between the two. And when Dubai World asks for “declaratory relief from obligations”, what does it mean? Does it want its $4.3 billion back?

Also, with Dubai World being the second biggest investor in MGM, isn’t it partly blaming itself?