Creditors of Imperial Pacific International (CNMI) LLC have notified the US District Court for the Northern Mariana Islands of their intention to file a motion seeking dismissal of the casino investor’s Chapter 11 bankruptcy petition, alleging abuse of the bankruptcy process.
According to the Saipan Tribune, Joshua Gray, one of the creditors, filed an opposition to several motions made by IPI relating to its bankruptcy petition, stating that IPI is using Chapter 11 to delay license revocation, avoid contempt proceedings, and hinder property liquidation.
Gray, along with other creditors, plans to file a motion to dismiss IPI’s bankruptcy petition, citing the company’s lack of an operating business suitable for restructuring. Other creditors have joined Gray’s opposition, alleging that IPI is not operating in good faith.
At the same time, Gray criticized IPI’s request for urgent approval of various motions without providing sufficient financial details, while arguing that there is no genuine emergency warranting immediate action.
IPI officially filed for Chapter 11 bankruptcy on April 19th, owing creditors over $160 million. However, Gray and other creditors demand answers regarding IPI’s financial management before any motions are considered.
The top three creditors with the highest judgments against IPI are CNMI Treasury, MCC International Saipan, and the Commonwealth Casino Commission. IPI’s bankruptcy filing lists significant debts owed to these entities.
