The federal court has ordered the US Marshals Service to seize motor vehicles owned by Saipan casino operator Imperial Pacific International LLC in the latest attempt to satisfy a former judgement ordering the company to pay more than US$2 million in unpaid fees to a former contractor.
According to Marianas Variety, the vehicles in question – which have been given an estimated value of US$1.05 million based on 2021 book valuations – include heavy equipment stored in the basement car park of shuttered casino Imperial Palace • Saipan.
The federal court order comes two years after the same court first ordered all vehicles and slot machines owned by IPI to be sold in order to satisfy the judgement in favor of USA Fanter, which had sued the casino operator for failure to pay money owed for construction work completed and for the provision of related labor and materials, among other costs.
IPI has since been deemed in default for failure to comply with various court requests, forcing the appointment of a receiver, Clear Management Ltd, to conduct a series of auctions of IPI’s gaming equipment. Those auctions have already raised more than US$1 million and are ongoing.
It remains unclear, however, how much sale of IPI’s motor vehicles will recoup given the US$1.05 million valuation was determined using the Kelley Blue Book’s valuation of the motor vehicles in May of 2021, and the assumption that all the motor vehicles were in optimal condition.
“The assumptions made in May 2021 are less applicable in light of the current circumstances,” the judge said. “Two years have passed, and IPI’s motor vehicles were not maintained, used, or stored in a manner to protect their value. The motor vehicles were not maintained on a regular basis, nor were they ever used.
“Instead, IPI’s motor vehicles are rotting within IPI’s casino resort basement parking and elsewhere. Due to the lack of maintenance or use, and the poor conditions where they are stored, the motor vehicles have significantly depreciated in value.”
IPI, whose casino has been closed since March 2021 due to the COVID-19 pandemic and has since had its casino license suspended for failure to pay various licensing fees, said in March it is continuing to look for new investors to help it reopen the property.
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