IPI asset liquidation: bidder challenges creditor and government subpoena

Loi Lam Sit’s attorney has said that the deposition notice and subpoenas should be found invalid.

Northern Mariana Islands.- The lawyer representing Loi Lam Sit, a bidder for IPI’s casino assets, has submitted a motion to the US District Court for the Northern Mariana Island, asking it to declare a subpoena and deposition notices requested by the CNMI government and creditor Joshua Gray as invalid due to the short notice period and the failure to notify other parties.

Joey San Nicolas said the deposition notices were issued with only two days’ notice, imposing an undue burden on Sit. He also said the notice did not comply with Federal Rules of Procedure 45(d)(1) and that this failure prejudiced Sit and the IPI estate.

The CNMI government and Gray had served a notice and subpoena demanding Loi Lam Sit’s presence for a deposition and the submission of specific documents on September 13. However, Sit allegedly did not comply, so the parties requested an order to appear and produce requested documents. They have proposed a daily fine of US$2,000 until Sit complies.

IPI filed for Chapter 11 bankruptcy in 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.