Imperial Pacific owes CNMI government over US$87.5 million

Lawyers claim that the beleaguered Saipan casino operator Imperial Pacific International (CNMI) LLC owes the CNMI government in excess of US$87.5 million.

IPI owes creditors a total of $165.8 million, according to a motion submitted by the CNMI government last Thursday. Of that amount, the government is due approximately US$87.6 million, or 52.8% of the total. According to Marianas Variety, the overdue debt amounts to US$62.0 million in unpaid annual license fees, US$17.6 million in delinquent casino regulatory fees, and nearly US$8.0 million in unpaid taxes, fines, and interest.

The move to change IPI’s most recent Chapter 11 bankruptcy petition to Chapter 7 was submitted by the CNMI government. While Chapter 7 deals with the liquidation of the debtor’s assets and their distribution to creditors, sometimes resulting in dissolution, Chapter 11 permits restructuring and reconstruction.

The government’s attorney general, chief prosecutor Robert Glass Jr., said that IPI’s inability to pay its obligations stems from the 2020 casino shutdown. According to Marianas Variety, he claimed, “It has no income and is unable to pay post-petition obligations that continue to accrue.” IPI has two upcoming deadlines: the annual casino license fee due on August 12, 2024, and unpaid rent due on April 28, 2024.

Glass pointed out that the IPI hotel structure is incomplete and has never been used. With two revocation processes pending and further complaints alleging revocation for failure to pay substantial fines and violation of commission directives, the casino gaming license is presently suspended. He came to the conclusion that IPI is not financially able to move on under Chapter 11.

To postpone things, IPI filed for Chapter 11 bankruptcy in April.

Original Story by: IAG