Casino operator said it would have to consider closing Imperial Pacific Saipan if it is forced to pay a recent US$5.65million fine.
Saipan.- Imperial Pacific International (IPI) has warned that it could be forced to close its property if it has to pay a multi-million-dollar settlement imposed following a contractual dispute.
The company said there is a real risk it will have to permanently close its Imperial Pacific Saipan property due to lack of finances if it is forced to pay the US$5.65million judgement in favour of former contractor, Pacific Rim.
In April, Chief Judge Ramona V. Mangola ordered IPI to pay US$5.65 million to Pacific Rim in a lawsuit for alleged breach of contract.
IPI appealed to the Ninth Circuit in an attempt to reverse the order, which is still pending. But as of Friday, Pacific Rim can collecting its fine from IPI.
IPI counsel, Michael W. Dotts, said to local press that if the judgment becomes enforceable while the appeal is pending, the company will be unable to pay it and could be forced to close its property.
According to Dotts, IPI’s financial circumstances have been negatively impacted by Covid-19 crisis.
He noted that the closing of IPI would cause around 1,066 employees to be put out of work.