Imperial Pacific International Enters Chapter 11 Bankruptcy Amid Financial Strain

Financially troubled Imperial Pacific International (CNMI) LLC has filed for Chapter 11 bankruptcy, postponing talks with the Commonwealth Casino Commission.

The ailing casino operator’s existence and that of its flagship Imperial Pacific Resort development are called into question by the plan, which aims to restructure debts exceeding $150 million.

Despite growing financial difficulties, Imperial Pacific International (CNMI) LLC made a calculated decision to apply for Chapter 11 bankruptcy protection.

This move will have a significant impact on the gaming business in the Commonwealth of the Northern Mariana Islands (CNMI).

The action, which was made public in a filing to the U.S. District Court for the NMI, demonstrates how dire IPI’s financial circumstances are, leading to the suspension of talks with the Commonwealth Casino Commission (CCC) while the business attempts financial restructuring.

The bankruptcy filing reportedly shatters ongoing discussions between CCC representatives and IPI executives, such as board chair Edward C. DeLeon Guerrero and executive director Andrew Yeom, according to local media.

Yeom, whose temporary contract was about to expire, had assigned DeLeon Guerrero the task of negotiating, but IPI’s bankruptcy lawsuit put a stop to the negotiations.

The creation of a comprehensive reorganization plan is crucial to the resolution of IPI’s Chapter 11 filing, with the CNMI government emerging as a major creditor in the restructuring process.

IPI can satisfy its financial obligations and carry on with its operations under Chapter 11 protection, indicating that it is committed to managing the volatile economic environment.

But the revelation has prompted demands for prompt action from CCC officials, with Rafael S. Demapan, the vice chair of the board, calling for a special meeting to talk about perhaps canceling IPI’s gaming license.

Given DeLeon Guerrero’s resignation from the negotiations, Demapan is leading discussions over the timeline for these processes, which are yet unknown.

Despite the unstable financial landscape, IPI is unwavering in its resolve to fulfill its responsibilities and come out on top of the crisis.

Director Howyo Chi emphasized the thorough consideration that went into the decision, emphasizing plans for operational optimization, employee welfare, and the completion of the Imperial Pacific Resort project in addition to steps for debtor-in-possession financing.

The gaming industry and local stakeholders are intently monitoring events as IPI navigates the complexity of Chapter 11 proceedings, cognizant of the far-reaching implications for the CNMI’s economic landscape.

Original Story by: Asian Gaming Brief