IPI proposes alternative to asset sale to cover debt

IPI owes Pacific Rim over US$5m.
IPI owes Pacific Rim over US$5m.

Pacific Rim has asked for the operator’s assets to be sold to cover a US$5.5m debt, but the firm has presented another option.  

Northern Mariana Islands.- Imperial Pacific International (IPI) has proposed an option to avoid the sale of its slots machines and vehicles to cover unpaid debts to Pacific Rim.  

The contractor Pacific Rim has obtained several court orders to seize money and goods to cover IPI’s debts for unpaid work at its casino on Saipan. The developer has been allowed to seize funds from IPI bank accounts but claims the casino operator still owes US$5.5m plus interest, costs, and fees. 

The former contractor this week asked for a court to order the sale of IPI’s slot machines and vehicles. 

IPI has appealed, saying the decision would cause the company “irreparable harm” and has proposed that one of its investors, Pacific International Property Management make a local deposit of almost US$6m that could be transferred to Pacific Rim should its appeal fail.  

If IPI’s appeal succeeds, the funds would be transferred back to the investor once more.  

IPI said the value of its vehicles is about US$6m but could be sold at auction for between US$1.5m and US$3m, costing the operator considerable expenses to replace them once the casino reopens.  

The gaming machines are valued at US$20m but the operator’s lawyer argued that with casinos closed worldwide due to the pandemic, there is no market for them and an auction would raise about US$2m, while again the cost of replacing the assets would be much larger.  

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IPI Northern Mariana Islands Pacific Rim