The receiver Clear Management has postponed the first of six auctions of IPI’s gaming equipment to give the company time to settle a lawsuit with a former contractor.
Northern Mariana Islands.- IPI’s receiver Clear Management Ltd has announced that its first auction for the sale of the casino operator’s assets has been postponed for 30 days. The decision was taken to allow IPI more time to settle a lawsuit with a former contractor. The sale will be cancelled if IPI can reach an agreement before December 15.
A week ago, IPI proposed that it deposit more than $2m in a restricted account controlled by the Federal Court to cover a judgment in favour of former contractor USA Fanter Corporation. The company had sued IPI for failure to pay the full contract for labour and materials provided for the improvement of its property in Garapan.
The first of the six auctions was originally scheduled to be held on November 30, to raise funds to pay an unpaid balance of around $2m. If the parties cannot agree on the terms, the first auction will now go ahead on December 31, with five auctions to follow. Clear Management expects to receive fees and costs in the event of termination.