IPI requests meeting over unpaid casino licence fee
The casino operator says it now wants “a forum for both parties to seek resolution in good faith.”
Northern Mariana Islands.- Imperial Pacific International (IPI) executive director Howyo Chi has formally requested a meeting with governor Arnold I. Palacios to discuss its unpaid casino licence fees. In a letter, delivered on Friday (November 1), Chi referenced Article 30 (c) of the casino licence agreement, which allows IPI and the CNMI government to hold a “meet and confer” session within 10 working days of the formal presentation of a dispute.
Chi said he delivered a document outlining IPI’s position on the payment dispute on August 13 and that the governor’s office responded on August 20 to indicate a willingness to meet, but no date was set. Chi says the casino operator has now requested a date and time “to be confirmed at the earliest opportunity.”
He wrote: “Our objective is to engage in constructive dialogue with the Commonwealth to clarify our position regarding the financial obligations under the [casino licence agreement] during the licence suspension period. We appreciate your attention to this matter and look forward to working collaboratively toward a resolution. Please let us know your availability for this meeting or any alternative dates that may be convenient.”
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.
CCC chair suggests IPI consider giving up casino licence exclusivity
IPI’s request comes after the CCC board chair Edward DeLeon Guerrero recommended that IPI give up its exclusive casino licence rights in order to have a greater chance of selling its assets. The recommendation was suggested in a letter to governor Palacios, the Office of the Attorney General, and the CNMI Legislature.
According to the Saipan Tribune, DeLeon Guerrero wrote: “There is a greater chance of success for IPI to sell its assets and the casino licence if they voluntarily surrender the exclusivity, the Casino Licence Agreement (CLA) gets amended, and the Legislature entertains amendment to P.L 18-56.”
DeLeon Guerrero also proposed that the minimum investment requirement for licensees looking to construct new hotel accommodations be reduced from US$2bn to US$300m. He suggested decreasing the necessary number of new hotel rooms from 2,000 to 300 per licensee. The CCC chair also recommended lowering annual casino licence fees from US$15m to US$5m, regulatory fees from US$53m to US$1m per licensee and implementing a tax of 5 per cent on gross gaming revenue.
