Clear Management seeks approval to sell IPI vehicles
Clear Management is due to sell 11 luxury vehicles as part of its latest auction.
Northern Mariana Islands.- Court-appointed receiver Clear Management has submitted a motion to the NMI bankruptcy court requesting permission to proceed with the sale of vehicles owned by IPI. Attorney Michael White, representing Clear Management, filed the motion on Friday (June 7).
According to the motion, the had already been auctioned to eight bidders for US$429,500 in April, before IPI’s bankruptcy filing. To date, US$233,750 of the sale price has been collected and is held in an escrow trust account.
IPI filed for bankruptcy on April 19 before two of the winning bidders had completed their payments for three of the vehicles, prompting Clear Management to delay the accounting of the sale. According to The Saipan Tribune, White’s motion noted that Clear Management does not possess the original title documents for the vehicles, only photocopies provided by IPI. The vehicles remain on IPI’s property, and their registrations have mostly expired. Clear Management asserted that the US$233,750 received from the vehicle sales should not be considered IPI’s property.
The motion requested that the court approve the sale contracts, allowing Clear Management to finalise transactions with the successful bidders and retain its commission and expenses from the proceeds. If the court does not approve the sales, Clear Management plans to seek compensation for its services and costs from IPI.
Currently, US$56,867.20 from the sale of IPI gaming equipment remains in the escrow account, pending court distribution.
NMI bankruptcy court approves IPI interim funding
Chief judge Ramona V. Manglona of the District Court for the NMI has approved a request by IPI for debtor-in-possession (DIP) financing allowing an interim withdrawal of US$400,000. IPI director Howyo Chi said half of the funds will be allocated to pay the Department of Public Lands for the lease of the land where IPI’s complex is situated. The remaining half will be assigned to cover salaries and administrative costs.
The approved US$400,000 interim funding represents a fraction of a US$7m loan IPI recently secured from a Hong Kong-based financing institution with the remaining US$6.6m pending court review on June 21.
