MGM Mirage (MGM) has termed as baseless the lawsuit filed by its joint venture partner Dubai World alleging the company had breached the terms of their $8.6 billion CityCenter development in Las Vegas, a report said.

Dubai World had earlier said its Infinity World unit had filed a case in the Delaware Chancery Court against MGM.

"The lawsuit filed yesterday by a subsidiary of Dubai World is completely without merit. Dubai World is well aware of our written commitment to meet our funding obligations and that MGM Mirage has available cash to satisfy those obligations," Alan Feldman, a MGM spokesman, was quoted as saying by the Dow Jones report.

"MGM Mirage is ready, willing and able to fund its share of the costs to complete CityCenter, including a required payment this week," a statement from Feldman said.

In its lawsuit, Dubai World alleged that MGM’s admissions in its 10-K filed with the Securities and Exchange Commission (SEC) on March 17 constitute a breach of the CityCenter joint venture agreement and puts the CityCenter development project at risk. 

Form 10-K provides a comprehensive overview of the company's business and financial condition and includes audited financial statements.

Specifically, and amongst other risk factors, MGM stated in its 10-K filing that “There is substantial doubt about our ability to continue as a going concern”, the lawsuit said.

In its court filing, Infinity World asked for a declaratory judgment and other measures that would relieve Infinity World of its obligations under the joint venture agreement resulting from MGM’s breach.

CityCenter is a mixed-use luxury residential, resort and retail complex being developed by MGM on 67 acres between the Bellagio and Monte Carlo resorts on the Las Vegas Strip.  It is owned by CityCenter Holdings LLC, a joint venture equally owned by MGM and Infinity World.  The complex, scheduled to open in late 2009, has been under construction since 2005.

Dubai World said MGM’s disclosure that it cannot provide assurance that it will be able to meet its future payment obligations to CityCenter has left it no other option but to act to protect its investment and the future of CityCenter. The current path of the project is simply unsustainable given our partner’s financial troubles, it said.