The minimum bid requirement for all IPI assets has been set at US$10m in cash.<\/p>\n\n\n\n\n\n\n\n
Northern Mariana Islands.- Imperial Pacific International (IPI)<\/strong> and its unsecured creditors have asked the federal bankruptcy court to allow them to create a bidding procedure to sell IPI’s unfinished Garapan hotel casino and real estate assets<\/a>.<\/p>\n\n\n\n The minimum bid for all IPI assets has been set at US$10m in cash. In a document filed on January 4, IPI and the committee of its unsecured creditors proposed to choose an initial “stalking horse” bidder<\/strong>, schedule an auction, and set up procedures to assign and assume contracts. A stalking horse agreement is made before an auction to set a minimum price, maximising the value of a bankrupt firm\u2019s assets.<\/p>\n\n\n\n If the plan is approved, any interested party could bid on the assets, either individually or as a whole, but bids couldn’t be made just for the casino licence. The sale of the assets will require competitive bidding and must be approved by the court.<\/p>\n\n\n\n Last October, Chief Judge\u00a0Ramona V. Manglona<\/strong> of the District Court for the NMI\u00a0denied IPI\u2019s bid to\u00a0sell its unfinished Garapan hotel casino and real estate assets. Manglona also turned down IPI\u2019s request to employ Keen-Summit Capital Partners to promote IPI\u2019s property.<\/p>\n\n\n\n Instead, the judge granted IPI creditors\u2019 request to engage Intrepid Investment Bankers to <\/strong>market IPI\u2019s properties as a holistic business<\/a> rather than real estate property. The committee had said Intrepid could be able to identify potential buyers that the previous limited marketing process had overlooked.<\/p>\n\n\n\n The proposal would allow IPI and the creditor committee to select a stalking horse bidder and seek court approval for a breakup fee and reimbursement of necessary expenses incurred by the stalking horse bidder for its qualified bid. IPI and the committee plan to file a motion to approve the Stalking Horse Agreement, which will be open to higher bids, and to allow breakup fees by February 14. They will notify relevant parties and potential bidders about the sale motion. A sale hearing is scheduled for March 25, at 9am. All interested parties can object to the sale motion and breakup fees for any reason.<\/p>\n\n\n\n To participate in the auction, bidders must submit in writing to IPI, the committee, and Intrepid a qualified bid on or before February 21 at 12 p.m.<\/p>\n\n\n\n IPI filed for Chapter 11 bankruptcy last April<\/a>, citing debts of over US$165.8m. Among the company\u2019s 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<\/a> with claims ranging from US$5.68m to US$62m.<\/p>\n\n\n\n CCC board chair\u00a0Edward DeLeon Guerrero\u00a0<\/strong>has said the commission is “in desperate need of money” and stressed they owe “all commissioners compensation, as required by law.”<\/p>\n\n\n\n The commission\u2019s office at the Springs Plaza in Gualo Rai has been closed since January 19, 2023<\/a>, following the closure of IPI, which halted operations in March 2020 due to the Covid-19 pandemic. Since IPI’s shutdown, the CCC has not collected its annual regulatory fee of US$3.15m, leading to layoffs of over 50 employees. The commission, however, continues to uphold its regulatory responsibilities.<\/p>\n\n\n\n During a monthly meeting, DeLeon Guerrero further said the CCC needs funds to hire staff, pay office rent, maintain their equipment, and settle utility bills.<\/p>\n\n\n\nCCC seeks funding to continue operating<\/h2>\n\n\n\n