IPI accused of abusing bankruptcy process
IPI’s creditors have notified the US District Court that they plan to file a motion to dismiss the bankruptcy petition.
Northern Mariana Islands.- Creditors have accused Imperial Pacific International of misusing its Chapter 11 bankruptcy petition. Joshua Gray, a former director of operations who won a discrimination lawsuit against the company, has lodged objections through legal representatives Bruce Berline and Aaron Halegua.
Gray contended that IPI is exploiting Chapter 11 to delay potential licence revocation, evade legal actions, and impede asset liquidation. He said IPI lacks a viable business to restructure and accused the company of failing to disclose crucial financial details. Gray signalled intention to file a motion seeking the dismissal of IPI’s bankruptcy petition.
Joining Gray’s opposition are other creditors: Artman, Fujitec Pacific, GT Building Systems International PTD, Hermine Ipwan Islam dba Ipwan Security Services, U.S.A. Fanter Corp., James Whang dba South Pacific Lumber, and Hughes Hubbard & Reed LLP.
In April, the Commonwealth Casino Commission (CCC) opted to delay its decision regarding the status of IPI’s gaming licence. During a board meeting, CCC vice chair Rafael S. Demapan said the postponement was deemed necessary to allow a clearer understanding of the legal implications of IPI’s bankruptcy proceedings.
