IPI gets three year extension for initial gaming facility

Imperial Pacific International Holdings has been given an extension for completion of its initial gaming facility in Saipan to no later than February 28, 2021, according to a filing from the operator.

IPI said the extension request, made to the Commonwealth Lottery Commission was made because of the “drastic reduction and non-availability of sufficient skilled and qualified construction labors locally in Saipan and mainland USA.”

In return for the extension, IPI has agreed to submit a Construction Milestone Schedule, a list of pending tasks and projected completion dates, as well as quarterly reports on detailed progress.

The company has also promised to give a US$500,000 donation to the Commonwealth Healthcare Corporation in consideration for the revised Implementation Schedule.

Furthermore, should IPI miss the 2021 deadline, the company will be required to pay liquidated damages of US$5,000 per day for each day the project is past the deadline.

The revised schedule comes as the company reports its results for the six months ended June 30, 2018.

According to the results filing, IPI recorded a profit of HK$79 million (US$10.1 million) in 18H1, down 91.3 percent year-on-year.

In an earlier filing, IPI said the “substantial” decrease in profit was due mainly to a decrease in total revenue and impairment of trade receivables.

Revenue fell from HK$4.5 billion in 17H1 to HK$2.2 billion in 18H1. Adjusted EBITDA fell from HK$1.6 billion to HK$450.5 million.

The results show that VIP table games rolling fell 48.9 percent in 18H1 to HK$100.3 billion, due to the impact of FIFA World Cup and tightening of marker credits.

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