Court rejects CNMI government bid to liquidate IPI assets
The court has rejected a motion filed by the government to convert Chapter 11 bankruptcy to Chapter 7.
Northern Mariana Islands.- Chief judge Ramona V. Manglona of the District Court for the NMI has denied the government’s motion to convert Imperial Pacific International (IPI)’s Chapter 11 bankruptcy to Chapter 7. The move would have allowed the liquidation of all IPI’s property and assets to settle its debts, but IPI’s unsecured creditors argued that conversion to Chapter 7 could disadvantage them.
Robert Glass Jr., chief solicitor of the office of the attorney general, had requested the court delay its ruling, but the court declined. According to The Saipan Tribune, the judge also turned down the US Trustees’ alternative request for dismissal, stating that it was not in the best interest of IPI creditors or the estate. The judge will deal with a request for the court to appoint a Chapter 11 trustee in a separate hearing.
Meanwhile, IPI has requested approval from the federal bankruptcy court to sell its unfinished Garapan hotel casino and real estate assets to Loi Lam Sit for US$10m. Loi Lam Sit is a resident of Hong Kong who manages Top Pride International, a wholesale distributor of cosmetic products.
The proposal sale would include the company’s ownership interest in Imperial Pacific Properties, which holds leasehold interests in adjacent lots to the construction site. IPI’s legal representative, Chuck Choi, said the cost of completing the construction of the hotel would be between US$100m and $150m.
