The federal court handling the bankruptcy case of Imperial Pacific International (IPI) has approved the bidding procedure for the sale of the casino’s assets, confirming the minimum bid requirement for all IPI assets at $10 million in cash.
The ruling also confirms the establishment of a committee of unsecured IPI creditors to set up a bidding procedure for the asset sale, the designation of a stalking horse bidder, the scheduling of an auction and sale hearing and various other processes.
Quoted by the Marianas Variety, Judge Robert Faris indicated that “The Bidding Procedures shall govern the selection of the Stalking Horse Bidder, bids and proceedings related to the Auction and the sale of the Assets”.
A stalking horse bidder is one initially chosen by the debtor to set the base price for the assets being sold in an auction, aimed at attracting other potential bidders.
“The Sale Notice is approved, and no other or further notice of the proposed sale of the Assets, the Auction, the Sale Hearing, or the Sale Objection Deadline shall be required if [IPI] or the Committee serves and publishes the Sale Notice in the manner provided in the Bidding Procedures and this Order,” indicated the judge.
The auction includes bids on IPI’s assets but not its casino license, while the sale will be subject to competitive bidding and court approval. IPI and the committee will 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. 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.
