IPI creditors seek holistic approach to assets sale

Creditors say that treating the assets solely as real estate could discourage potential buyers in the gaming industry.

Northern Mariana Islands.- The committee of Imperial Pacific International (IPI)’s unsecured creditors aims to engage Intrepid Investment Bankers to market IPI’s properties as a holistic business rather than real estate property to attract more potential buyers and potentially increase the sale price. The committee believes Intrepid may be able to identify potential buyers that the current limited marketing process has overlooked.

According to The Saipan Tribune, creditors said that if the approach does not succeed, IPI can proceed with a real estate sale using the proposed real estate broker.

In August, IPI requested approval from the federal bankruptcy court to sell its unfinished Garapan hotel casino and real estate assets for US$10m to Loi Lam Sit, a resident of Hong Kong who manages Top Pride International, a wholesale distributor of cosmetic products. The proposal sale would include the company’s ownership interest in Imperial Pacific Properties, which holds leasehold interests in adjacent lots to the construction site.

IPI’s legal representative, Chuck Choi, said the cost of completing the construction of the hotel would be between US$100m and $150m.

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. On September 6, IPI submitted an application to employ Keen-Summit Capital Partners as its real estate broker to market its assets.