A creditor of troubled Saipan casino operator Imperial Pacific International (CNMI) LLC is looking to intervene in a receivership brought against IPI by one of its former employees.
According to a report by The Saipan Tribune, Century Estate Investment Ltd, which lent IPI around US$9 million last year, has filed a motion to intervene in the receivership sought by IPI’s former Director of Operations Joshua Gray, arguing it has a “secured interest in IPI assets”.
Gray had in May of this year won a federal court judgement to the value of almost US$5.7 million against IPI for racial discrimination claim, wrongful termination and retaliation claims in relation to his complaints against IPI’s employment practices.
When IPI failed to either pay the amount or post a bond within the next month, Gray applied for a writ of execution against certain IPI assets, which was issued on 16 August 2023. The US Marshals Service confirmed six days later that the writ was executed, seizing an array of items including IPI’s vehicles, liquor, computer hardware, furniture and remaining casino-related and security equipment. Also on the block are two crystal dragons adorning the lobby of IPI’s Saipan resort, Imperial Palace • Saipan.
However, as per The Saipan Tribune, Century Estate is looking to intervene in the receivership, claiming it “rescued [IPI] from its debts and cash flow problems.
“The substantial funds were provided by Century Estate on the basis of a loan secured under a mortgage of IPI’s collateralized assets,” it said. “Thus, Century Estate Investment Limited has a secured interest in [IPI] assets that is prior and superior to any other party. [IPI] has not made repayment to Century Estate and is in full default of the loan. Century Estate now seeks to intervene in this action in order to have the right to move forward and order liquidation of assets toward mitigation of losses from its outlay under the loan.”
The loan, Century Estate says, was provided to help IPI maintain ongoing construction, survive its debts and revive cash flow.
“In conjunction with making the loan, Century Estate took a first priority security interest/mortgage in [IPI’s] collateral assets,” the motion continues.
“The total amount due and owing on Century Estate’s loan to [IPI] is currently US$9 million plus 8% interest per annum. [IPI] has defaulted on the loan, and the total amount remains due to Century Estate Investment Limited.
“Century Estate Investment Limited seeks to intervene in this matter to protect its interest in the collateralized assets and to liquidate the assets in order mitigate the substantial losses from [IPI’s] default.”
As recently reported by IAG, IPI also owes the CNMI government US$76.5 million in outstanding fees, placing it in an increasingly precarious position as the resumption of license revocation hearings edges closer.
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