Creditors of Imperial Pacific International (CNMI), LLC are seeking court approval for a structured dismissal that would formally end the failed Saipan casino operator’s Chapter 11 bankruptcy proceedings.
The motion was filed jointly by Imperial Pacific and the Official Committee of General Unsecured Creditors, according to Public Radio Guam. A hearing is scheduled for August 4th before US Bankruptcy Judge Robert J. Faris.
Under the proposal, the remaining funds would be distributed to creditors while previous court orders linked to the sale of Imperial Pacific’s assets and regulatory matters would remain in effect. The creditors’ committee would be dissolved after completing the distributions.
Imperial Pacific (IPI) reportedly owes more than $141 million to government agencies, contractors and former employees.
The US trustee has objected to an exculpation provision protecting IPI, the committee and their professional advisers from certain claims involving their conduct during the bankruptcy case.
The committee subsequently narrowed the provision. It would not protect the parties from claims involving wilful misconduct, gross negligence, fraud or criminal acts.
IPI filed for Chapter 11 bankruptcy protection on April 19th, 2024. Its Saipan casino has remained closed since March 2020.
