IPI seeks additional debtor-in-possession financing

The casino operator has asked the NMI Bankruptcy Court for an additional US$1m.

Imperial Pacific International (IPI) has revised its application with the NMI Bankruptcy Court to seek an additional US$1m in debtor-in-possession (DIP) financing on top of the remaining US$6.6m from a US$7m loan already requested. IPI’s legal representative, Chuck Choi, made the amended request on the same terms the court previously approved in an interim order authorising an initial withdrawal of US$400,000.

The Office of the Attorney General’s Robert Glass Jr., representing the CNMI, and attorney Aaron Halegua, representing IPI creditor Joshua Gray, objected to the revised financing request. Christopher Wong, the proposed pro hac vice attorney for IPI’s creditors, requested that IPI present a revised budget to justify the additional funds.

Judge Manglona indicated that the court is inclined to continue the hearing to allow IPI time to produce a revised budget justifying the additional financing. A hearing is scheduled for June 27.

CNMI government aims to liquidate all IPI assets

The CNMI government has moved to convert IPI’s Chapter 11 bankruptcy to Chapter 7, allowing the liquidation of all IPI’s property and assets to settle its debts. Glass Jr said IPI lacks the financial resources to continue under Chapter 11, which allows for reorganisation and restructuring. Chapter 7 would see the complete liquidation of the business, possibly leading to its dissolution.

Glass said the company had no ongoing business operations, could not demonstrate a likelihood of recovery, and had failed to maintain necessary insurance.