Parties in Imperial Pacific International’s (IPI) Chapter 11 bankruptcy case are nearing completion of a crucial lease assignment that will transfer control of the former Saipan casino operator’s assets to Team King Investment (CNMI) LLC, according to a report from Marianas Variety.
Team King Investment won the bid for IPI’s casino assets during a court-approved auction held on February 26th, 2025, marking a significant step toward resolving the $165.8 million bankruptcy case.
The completion of the deal has been delayed by ongoing negotiations between Team King Investment and the Department of Public Lands regarding the assignment of IPI’s ground lease, which covers 19,204 square meters of prime casino property. However, recent developments suggest the parties are close to finalizing all necessary documentation.
In a joint pre-status conference report filed on July 17th, attorneys representing IPI, the CNMI government, and creditors informed the federal court that Team King Investment and the Department of Public Lands are finalizing the form of the assignment lease and other related documents. The report indicated that significant progress has been made following a July 11th meeting between DPL officials and Team King representatives.
The status report confirmed that DPL sent Team King its final version of the assignment on July 15th, which both Team King and IPI find acceptable. Federal Judge Robert J. Faris had approved the sale on April 29th, 2025, after resolving objections from creditors. However, the transaction’s completion has been contingent upon the successful assignment of the ground lease with DPL.
As a demonstration of commitment, Team King has already paid the $207,000 annual ground rent for the lease period from May 1st, 2025, to April 30th, 2026. The company has also advised the court that once the lease assignment is fully executed, the escrow account can be funded within ten days.
The bankruptcy case stems from IPI’s financial collapse following the COVID-19 pandemic. The company operated a casino in Saipan for four years before closing in March 2020 due to pandemic restrictions. IPI filed for Chapter 11 bankruptcy protection on April 19th, 2024, citing liabilities exceeding $165.8 million.
Team King’s principal, Hiroshi Kaneko, was scheduled to arrive on Saipan on July 21st to sign and notarize the necessary documents. The company has also received a separate side letter from DPL dated July 15th, which is currently under review.
The status report noted that while the CNMI government has requested additional documents from Team King, these are not considered closing documents and should not delay the transaction’s completion. Most remaining delays are attributed to the finalization of the assignment and other closing documents requiring DPL approval.
As part of the resolution process, IPI is dismissing its pre-petition litigation against the CNMI government, Governor, and Commonwealth Casino Commission with prejudice. The company had previously filed lawsuits alleging breach of casino license agreement and constitutional violations related to the revocation of its exclusive casino license over unpaid regulatory and license fees totaling $79.63 million.
On July 16th, 2025, IPI and the CNMI government filed stipulations to dismiss all pending lawsuits with prejudice, clearing another obstacle to the transaction’s completion. The reporting parties have requested that the court continue the status conference and related motions for approximately fourteen days to allow for the final completion of all documentation and closing procedures.
