Saipan’s Commonwealth Casino Commission has again postponed revocation hearings around the casino license of Imperial Pacific International (CNMI) LLC after the company last week filed for Chapter 11 bankruptcy in the District Court of the NMI.
According to a report by Saipan Tribune, the CCC Board made the decision to postpone “until further notice” after learning of IPI’s bankruptcy claim in what represents yet another delay to any resolution on the matter. IPI’s license has been suspended since April 2021 due to its failure to pay millions in licensing and regulatory fees.
However, in a statement IPI director Howyo Chi said the company has filed for bankruptcy as part of a “comprehensive plan to restructure its financial obligations and position the company for a resilient comeback in the dynamic gaming industry.”
It was reported Monday that IPI’s bankruptcy claim included confirmation it owes more than US$165 million to the CCC and creditors.
According to Marianas Variety, Chi said the claim is a “strategic move” and IPI “aims to emerge as a stronger, more sustainable entity that will continue to contribute to the economic growth and prosperity of the CNMI community.
“Our decision to file for Chapter 11 bankruptcy protection was made after careful consideration and with the long-term interests of our stakeholders in mind,” Chi said.
“We have arranged for sufficient debtor in possession financing that will ensure that IPI can meet its post-petition obligations, including making millions of dollars in payments to the Commonwealth Casino Commission once a settlement with the Commission is finalized.
“The Chapter 11 process will allow us to address our financial challenges head-on, while preserving jobs, honoring our commitments to vendors and suppliers, and revitalizing our operations to deliver exceptional gaming and entertainment experiences.”
IPI had earlier this month put forward a settlement agreement to the CCC that would include repayment of US$24 million in 2024, although it remains unclear where that money was to have come from given its inability to pay off any major debts in recent years.
A Hong Kong court also ordered last week that IPI’s parent company, Imperial Pacific International (IPI), be wound up, with a provisional receiver appointed.
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