Dubai World unlikely to pay off Nakheel debt

* username: rupertbu

Dubai World which is in talks to restructure some $22 billion debt, is unlikely to pay off developer Nakheel's $980 million Islamic bond, a source familiar with the matter said on Monday, and all options are open.

"It is very unlikely that the bond will be paid off," the source. "Incredibly unlikely."

The person, who spoke on condition of anonymity, said all options are on the table for the issue which comes due May 13.