Saipan casino operator Imperial Pacific International (IPI) and its unsecured creditors’ committee have asked the federal bankruptcy court to approve a bidding procedure for the sale of the casino’s assets, with a minimum bid set at $10 million in cash.
According to local media outlet Marianas Variety, a stipulation filed on January 4th proposes designating a stalking horse bidder, scheduling an auction, and setting procedures for asset assumption and assignment. A stalking horse bidder sets the baseline price for auctioned assets, attracting other bidders and ensuring fair pricing.
Earlier, the court rejected IPI’s proposed sale procedures and allowed the creditors’ committee to hire Intrepid Investment Bankers to market IPI’s properties for a higher sale price. IPI filed for Chapter 11 bankruptcy in April 2024, owing over $165.8 million. The company operated a casino on Saipan until the pandemic forced its closure in 2020.
The stipulation outlines that prospective bidders may bid on IPI’s assets, but not the casino license, and the sale will be subject to competitive bidding and court approval. IPI and the committee also propose a break-up fee for the stalking horse bidder.
A sale hearing is scheduled for March 25th, 2025, with bids due by February 21st, 2025. Qualified bids must meet specific requirements, including disclosure of bidders’ identities, connections with IPI or other bidders, and details about the assets and liabilities involved.
The stipulation was signed by Aram Ordubegian, representing the creditors’ committee, and Chuck Choi, representing IPI.
