Imperial Pacific International (CNMI) LLC, facing mounting financial pressure, has sought refuge in Chapter 11 bankruptcy protection, halting negotiations with the Commonwealth Casino Commission (CCC).
According to local media, the bankruptcy filing, submitted to federal court on Friday, disrupts efforts by CCC executive director Andrew Yeom and CCC board chair Edward C. DeLeon Guerrero to finalize a settlement with IPI.
Yeom’s interim contract as executive director expired on April 13, compelling DeLeon Guerrero to represent him in discussions with IPI. However, the bankruptcy petition has thrown these negotiations into uncertainty.
Yeom commented that the outcome hinges on IPI’s reorganization plan, with the CNMI government as a significant creditor.
Under Chapter 11, IPI can continue operating while restructuring its finances. Responding to the development, CCC board vice chair Rafael S. Demapan called for a special meeting to deliberate on revoking IPI’s gaming license.
The timing of the notice vis-à-vis IPI’s bankruptcy filing remains unclear, with Demapan overseeing proceedings due to DeLeon Guerrero’s recusal.
Imperial Pacific International (CNMI) LLC’s Chapter 11 filing, submitted to the U.S. District Court for the NMI, marks a significant turn amid multiple civil lawsuits totaling over $150 million.
The move allows IPI to propose a reorganization plan to manage debts, with the company owing notable creditors, including the CNMI Treasury, MCC International Saipan, and the CCC, substantial sums.
Despite financial turmoil, IPI expressed commitment to fulfilling obligations and emerging stronger.
The company’s director, Howyo Chi, emphasized their decision’s careful consideration and provision of debtor-in-possession financing, and outlined plans for operational enhancement, ensuring employee welfare, and completing the Imperial Pacific Resort project.
