IPI withdraws initial US$400k from US$7m loan

The casino operator has already paid the Department of Public Lands US$209,070 for overdue lease payments.

Northern Mariana Islands.- Imperial Pacific International (IPI) has drawn an initial US$400,000 from a US$7m loan approved as debtor-in-possession financing, according to a filing at the NMI Bankruptcy Court. It also issued a cheque for US$209,070 to the Department of Public Lands to cover overdue lease payments, although it has not yet cleared.

The funds are part of a financial restructuring under Chapter 11 bankruptcy, which allows businesses to reorganise their debts. However, the CNMI government has filed a motion to convert the bankruptcy to Chapter 7, allowing the liquidation of all IPI’s property and assets as it argues IPI lacks the financial resources to continue under Chapter 11.

IPI seeks additional debtor-in-possession financing

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 the US$7m loan. The CNMI and attorney Aaron Halegua, representing IPI creditor Joshua Gray have objected. Christopher Wong, the proposed pro hac vice attorney for IPI’s creditors, requested that IPI present a revised budget to justify the additional funds. A hearing is scheduled for June 27.