The casino operator and Zhongfeng International have reached an agreement to subscribe US$6.4 million in convertible bonds.
Hong Kong.- Troubled casino operator Imperial Pacific International (IPI) has reached an understanding with a “strategic partner” to gain financing.
The company has entered into a memorandum of understanding (MOU) with Zhongfeng International Investment Holdings Group Co in which Zhongfeng has expressed its intention to subscribe for convertible bonds for a value of HK$50 million (US$6.4 million) at an initial conversion price per share of HK$0.05.
IPI and Zhongfeng now have three months to finalise the agreement.
No particular reason was given by IPI for the agreement, although the firm has been hit be several major legal cases.
It has been sued for failure to pay by providers such as Pacific Rim and Ping Shun Corp, and its casino operating licence is in danger for unpaid taxes in the Northern Mariana Islands dating back to 2018.