IPI aims to sell casino assets “as is”
The company says it cannot provide any warranties or representations.
Northern Mariana Islands.- Imperial Pacific International (IPI) has said that it cannot offer any warranties or representations, express or implied, regarding its casino assets being auctioned. In a notice of hearing filed in the bankruptcy division of the District Court for the NMI, IPI stated that the “Purchaser shall acquire the purchased assets at the closing ‘as is, where is’…. [the] Seller is making no representations or warranties whatsoever, express or implied, with respect to any matter relating to the Purchased Assets.”
Earlier this week, Loi Lam Sit, the stalking horse bidder in the sale of IPI’s assets, made a good faith deposit of US$1.25m for the company’s assets. Loi Lam Sit is the general manager of cosmetics distributor Top Pride International. IPI and its creditors believe a sound business justification exists for selling the casino assets. The hearing to evaluate the motion is scheduled before bankruptcy judge Robert J. Faris on March 25.
According to Mariana’s Variety, IPI shall pay the purchaser the sum of US$200,000 in the event the asset purchase agreement is cancelled due to either default or breach by IPI. The breakup fee will be classified as an administrative expense claim if the agreement is terminated because of a superior bid and will be payable at closing from the proceeds of an alternative transaction.
IPI filed for Chapter 11 bankruptcy last April, citing debts of over US$165.8m. Among the company’s largest unsecured creditors are the CNMI Treasury, MCC International, the Commonwealth Casino Commission (CCC), the law offices of Hughes Hubbard & Reed, Century Estate Investment, CNMI Division of Revenue and Taxation and Joshua Gray with claims ranging from US$5.68m to US$62m.
