Creditors oppose IPI request to extend stay on receivership

IPI’s creditors have filed motions opposing IPI’s request for a further stay of the receivership.

Northern Mariana Islands.- IPI creditors have filed a motion to oppose IPI’s request for a further stay on its receivership. Creditors want the appointed receiver, Clear Management, to go ahead with an auction of IPI’s assets. The initial auction was postponed for 30 days after IPI gained a stay to give it more time.

IPI agreed to provide $2.45m in replacement bonds as a security for the judgment in the lawsuit brought by USA Fanter Corp against the casino operator. However other creditors hope for an order to allow the receiver to sell sufficient assets to satisfy judgments in their favour and allow any other creditors who are not sufficiently secured to effectively take over from Fanter’s position.

The joint motion states: “The parties are working to reach agreements to adequately secure the other creditors’ judgments. If such agreements are reached, IPI’s opposition to the other creditors’ motion will become moot and plaintiffs’ opposition to IPI’s motion to extend stay will become moot.”

All parties, including IPI, agreed that no objection is required from either party before the status meeting currently scheduled for December 17.

The Saipan Tribune reported that the parties said: “If the parties have not reached agreements to secure the other creditors’ judgments by the time of the status conference, then the parties and the court shall discuss the proper way to proceed on the two motions, including whether the court would like any briefing on the motions.”

IPI’s attorney Kevin T. Abikoff, stated that under the provisions of the parties’ motion to suspend the judgment during the appeal period, IPI now requires approval of its replacement bond of $2.45m. The lawyer argued that because USA Fanter’s judgment is now fully protected during the appeal period, it will not be materially harmed by a stay on the limited receivership.