Creditors oppose CNMI government bid to liquidate IPI assets

IPI creditors argue that conversion to Chapter 7 would disadvantage them.

Northern Mariana Islands.- The committee of Imperial Pacific International (IPI)’s unsecured creditors has filed a motion opposing the CNMI government’s request to convert IPI’s Chapter 11 bankruptcy to Chapter 7. They argue that such a conversion does not benefit creditors.

Chapter 11 allows for reorganisation and restructuring, whereas Chapter 7 would result in a complete liquidation of assets. The committee fears that could lead to a fire sale leaving creditors with nothing. It has requested that the NMI Bankruptcy Court deny the Commonwealth’s motion and consider appointing a Chapter 11 trustee if the debtor does not meet sale milestones by an August 14 hearing date.

Attorney Aram Ordubegian, representing the committee, said that along with the debtor it has started interviewing investment bankers with experience in selling distressed hotel and casino assets. He noted that the committee’s representatives.

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