IPI creditors push for assets sale

Creditors are urging a US court to lift an automatic stay.

Northern Mariana Islands.- Creditors of Imperial Pacific International (IPI) have asked the US District Court for the NMI to lift an automatic stay to allow court-appointed receiver Clear Management to sell more of the casino operator’s assets. The stay follows the operator’s bankruptcy application.

Joshua Gray and USA Fanter Corp said Clear Management had spent $40,550 preparing for a vehicle auction but can’t advance because of the stay. According to The Saipan Tribune, creditors are receiving emails from bidders asking for the return of money. The creditors argue that the personal property is not needed for IPI’s reorganisation and that IPI does not own it. They also want the casino operator to compensate them for any loss in the value of the property caused by the delay.

In April, IPI filed for bankruptcy under Chapter 11 of the Bankruptcy Code. Creditors have accused the company of misusing the application. The Commonwealth Casino Commission (CCC) has opted to delay its decision regarding the status of IPI’s gaming licence to allow a clearer understanding of the legal implications of the bankruptcy proceedings.