CNMI government aims to liquidate all IPI assets

Authorities have filed a motion to convert Imperial Pacific International’s Chapter 11 bankruptcy to Chapter 7.

Northern Mariana Islands.- The CNMI government has moved to convert Imperial Pacific International (IPI)’s Chapter 11 bankruptcy to Chapter 7, allowing the liquidation of all IPI’s property and assets to settle its debts.

Chief solicitor Robert Glass Jr said IPI lacks the financial resources to continue under Chapter 11, which allows for reorganisation and restructuring. Chapter 7 would see the complete liquidation of the business, possibly leading to its dissolution.

Glass said the company had no ongoing business operations, cannot demonstrate a likelihood of recovery, and has failed to maintain necessary insurance. IPI seeks US$7m in post-petition financing, which Glass said would disadvantage creditors.

According to The Saipan Tribune, Glass noted that the Commonwealth holds US$87,573,315, or 52.8 per cent, of IPI’s largest unsecured claims, which have accumulated due to missed payments to Commonwealth agencies since 2020. This includes US$62,010,280 owed for Annual Licence Fees, US$17,620,000 for Casino Regulatory Fees, and US$7,943,035.39 for taxes, penalties, and interest.

The motion notes that IPI has not been operational since 2020, has no income, and cannot meet its accruing post-petition obligations. The company’s hotel remains unfinished, and its casino gaming licence is suspended, with two pending revocation proceedings. The NMI Bankruptcy Court will hear the motion in August.