The Governor of the Northern Mariana Islands (CNMI), Arnold Palacios, has noted that there is no more settlement procedure for its casino license with Imperial Pacific International (IPI), given its bankruptcy filing.
According to the Saipan Tribune, Palacios stated that “I knew that at some point that it’s going to end up like that”, referring to the bankruptcy filing.
IPI has been mandated to wind-down by Hong Kong’s High Court, with the entity listed on the Hong Kong Stock Exchange.
Trading in the company’s shares has been halted since April 1st of 2022 and a provisional liquidator has been appointed.
The official stated that IPI’s attorney even identified that the company is bereft of funds.
Creditors are also chasing after the Saipan casino operator, with up to $165.81 million in question, according to reports.
Most is owed to the CNMI Treasury for its alleged non-payment of casino license fees, with other dues to the Commonwealth Casino Commission and MCC International Saipan.
The Treasury is reportedly owed some $62.01 million, while the CCC is reportedly owed some $17.6 million and MCC International is due some $34.99 million.
IPI has issued a statement on the bankruptcy filing, noting that it is ‘part of a comprehensive plan to restructure its financial obligations and position the company for a resilient comeback in the dynamic gaming industry’.
The company’s director, Howyo Chi, also noted that “We have arranged for sufficient debtor in possession financing that will ensure that IPI can meet its post-petition obligations, including making millions of dollars in payments to the Commonwealth Casino Commission once a settlement with the Commission is finalized”.
The group head furthers that the company intends to complete the Imperial Pacific Resort, amongst the company reorganization, all of which are in doubt considering the current legal proceedings.
