IPI and creditors seek court approval for selected stalking-horse bidder
The general manager of Top Pride International has been chosen as the stalking horse bidder.
Northern Mariana Islands.- Imperial Pacific International (IPI) and its unsecured creditors have asked the federal court to approve the designation of Loi Lam Sit as the stalking horse bidder in the sale of the IPI’s unfinished Garapan hotel casino. They say Loi Lam Sit the general manager of cosmetics distributor Top Pride International has demonstrated his financial ability to proceed with the purchase.
In January, the District Court for the NMI approved the bidding procedure proposed by IPI. The minimum bid for all assets has been set at US$10m in cash. An auction will take place on February 26 if necessary to determine the highest bid.
A stalking horse agreement is made before an auction to set a minimum price. According to Mariana’s Variety, IPI’s stalking horse would offer US$12.5m. Should Sit be named, he would have to make a US$1.25m good faith deposit. Loi Lam Sit would also have the option to acquire IPI’s casino licence, subject to the approval of the bankruptcy court. He would have to pay an additional US$2.5m.
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.
