Creditors oppose US$10m bid for IPI assets
IPI’s creditors argue that the bid is low and works in favour of Loi Lam Sit.
Northern Mariana Islands.- The committee of Imperial Pacific International (IPI)’s unsecured creditors has filed a motion opposing the company’s plan to sell its unfinished Garapan hotel casino and real estate assets to Loi Lam Sit for US$10m. Attorneys Aram Ordubegian and Christopher K.S. Wong argue that the bid undervalues the assets and unfairly benefits Loi Lam Sit, who previously lent Imperial Pacific over US$7m in debtor-in-possession financing.
Loi Lam Sit is a resident of Hong Kong who manages Top Pride International, a wholesale distributor of cosmetic products. Creditors have alleged a conflict of interest and expressed concerns that the proposed bid procedures favour Sit without requiring him to prove his ability to meet lease obligations or operate a hotel. They also questioned the lack of a broader marketing effort to attract other potential buyers.
The CNMI government has also opposed IPI’s request to approve bid procedures, arguing that the proposed sale primarily benefits Loi Lam Sit, rather than all creditors. Glass also raised concerns about the potential violation of lease provisions.
The bankruptcy court is scheduled to hear objections on September 19.
