The Imperial Pacific International hotel and casino on April 3, 2025.
FEDERAL Bankruptcy Court Judge Robert K. Faris has granted Imperial Pacific International additional time to complete the sale of its casino assets to Team King Investment.
The court has scheduled a follow-up hearing for Friday, July 24, at 9 a.m. and ordered IPI, the Committee of Creditors, and the CNMI government to submit a status report by July 17, 2025.
During a hearing on June 27, IPI attorney Chuck Choi informed the court that the Commonwealth was expected to sign the lease assignment within two to three weeks. He expressed optimism that the sale would close by mid-July. Choi also stated that Team King plans to pay the overdue rent within the next few business days and requested a continuance.
Choi urged the court not to dismiss or convert the case, citing confirmation from Team King’s counsel of a $2.25 million deposit in anticipation of closing. He explained that transferring the remaining funds from Japan could take two to three weeks due to banking regulations, but an alternative transfer from a corporation controlled by Team King’s principal could be completed within a week — pending approval from the Department of Public Lands on the lease assignment.
The lease assignment has already been signed by both IPI and Team King. As a gesture of good faith, Team King has committed to paying the $207,000 annual ground rent for the lease period from May 1, 2025, to April 30, 2026.
Choi noted that DPL continues to request financial information from Team King, which he described as a demand for assurance of future performance. He argued that these should not be conditions for closing the sale.
Previously, Judge Faris ordered IPI to justify why its Chapter 11 case should not be dismissed or converted to Chapter 7.
Unlike Chapter 7, which involves liquidation, Chapter 11 allows a company to reorganize while continuing operations.
The judge required proof of renewed liability insurance by June 19, warning that failure to comply would result in dismissal without further notice.
IPI complied by submitting a liability insurance policy from Pacific Basin Insurance Company, valid from May 10, 2025, to May 10, 2026, along with payment receipts totaling $17,745. It also provided proof of workers’ compensation insurance for 26 employees, with a premium of $29,152.
IPI operated a casino in Saipan for four years, until its closure in March 2020 due to the Covid-19 pandemic. The company filed for Chapter 11 bankruptcy on April 19, 2024, citing over $165.8 million in liabilities.
Team King Investment (CNMI) LLC won the bid for IPI’s casino assets in a court-approved auction on February 26, 2025. Judge Faris approved the sale on April 29, 2025, after resolving creditors’ objections.
However, the sale has been delayed due to a dispute over the assignment of IPI’s ground lease (LA 15-002S) with DPL, which covers 19,204 square meters. DPL has not yet signed the lease assignment, and Team King has yet to provide all requested information or fully fund the escrow account.
