Chief Judge Ramona V. Manglona stated that USA Fanter Corp. Ltd. has received sufficient bonds guaranteed by Imperial Pacific International LLC and is no longer interested in the company’s limited receivership.
Northern Mariana Islands.- Chief Judge Ramona V. Manglona has recently revealed “IPI has fulfilled its promise to secure a bond totalling $2.45m” for the judgement in the lawsuit filed by USA Fanter Corp.
In her order, the judge also approved IPI’s motion to suspend the judgment during the appeal period; to approve the appeal deposit; to suspend the execution of the judgment during the appeal period, and to stay the receivership.
According to Mariana’s Variety, Manglona said: “The court finds that IPI has fulfilled its obligation to satisfy the bond requirements under Rule 62(b) and Local Rule 62.1 and therefore a stay of USA Fanter’s judgment pending appeal is appropriate.”
However, she stated her decision “does not dissolve the receivership as it applies to other creditors just yet.”
USA Fanter had sued IPI for its inability to pay the full amount under its construction contract for labour and materials provided for the improvement of IPI’s property.
According to Mariana’s Variety, IPI paid USA Fanter US$300,000 while the unpaid balance was around $2m.
Other creditors hope for an order to allow the receiver to sell sufficient assets to satisfy judgments in their favour and allow any other creditors who are not sufficiently secured to effectively take over from Fanter’s position.
The joint motion states: “The parties are working to reach agreements to adequately secure the other creditors’ judgments. If such agreements are reached, IPI’s opposition to the other creditors’ motion will become moot and plaintiffs’ opposition to IPI’s motion to extend stay will become moot.”