The unfinished Imperial Pacific International hotel-casino in Garapan.
Photo by Bryan Manabat
BECAUSE the casino operator has submitted proof of liability insurance to the federal bankruptcy court, Imperial Pacific International is requesting the court to postpone the status conference hearing by three more weeks.
IPI, through attorney Chuck Choi, also asked the court not to dismiss or convert the case at this time.
“Counsel for Team King has confirmed the receipt of an additional $2.25 million in anticipation of closing escrow. Counsel has also advised that it will take approximately two to three weeks to transfer the balance of the purchase price from Japan to Saipan due to Japanese bank regulations regarding the outflow of capital,” Choi said.
“Alternatively, counsel advises that Team King’s principal could promptly — within about a week — transfer funds from a corporation he controls if the Department of Public Lands signs off on the Assignment of Lease that must be recorded at closing,” he added.
Choi noted that the assignment has already been executed by both IPI and Team King.
According to Choi, he has been advised that “Team King will pay the annual ground rent (for the period from May 1, 2025, through April 30, 2026) of $207,000 for the Department of Public Lands lease as an additional show of good faith and its intention to consummate the transaction.”
He added, “The Debtor understands that the Department of Public Lands continues to request financial information, which can only be characterized as requests for adequate assurance of future performance. These demands should not be a condition to closing…”
In a previous order, Judge Robert Faris directed IPI to show cause why its Chapter 11 case should not be dismissed or converted to Chapter 7. He instructed IPI to submit proof that it had renewed or replaced its expired liability insurance by June 19. Failure to do so, he said, would result in dismissal of the case without further notice or hearing.
Judge Faris also noted that IPI reported having little or no cash and was unable to renew its public liability insurance when it expired. In addition, security guards protecting IPI’s properties had not been paid for about a month.
Complying with the order, on June 18, IPI submitted Public Liability Insurance Policy No. 2302123 from Saipan-based Pacific Basin Insurance Company, covering the period from May 10, 2025, to May 10, 2026.
IPI also submitted a copy of the payment receipt for the policy premium and the 5% Business Gross Revenue Tax, totaling $17,745.
In addition, IPI provided the court with a copy of its Workers’ Compensation Insurance Policy, which covers 26 employees for the same period, May 10, 2025, to May 10, 2026. IPI said it paid the policy premium — totaling $29,152 — by check to Pacific Basin.
IPI operated a casino on Saipan for four years until March 2020, when it shut down due to the Covid-19 pandemic.
On April 19, 2024, IPI filed for Chapter 11 bankruptcy protection, citing more than $165.8 million in liabilities.
Unlike Chapter 7, which involves liquidation, Chapter 11 allows a company to reorganize while continuing operations.
On Feb. 26, 2025, Team King Investment (CNMI) LLC was the successful bidder for IPI’s casino assets in a court-approved auction. Judge Faris approved the sale on April 29, 2025, after the parties reached a stipulation resolving creditor objections.
IPI, in a previous court filing, stated that the Commonwealth and Team King were “at an impasse” regarding the assignment of the company’s ground lease agreement (LA 15-002S) with the Department of Public Lands, which covers approximately 19,204 square meters of land.
DPL, which has declined to execute the lease assignment, wants Team King to provide certain requested information to the CNMI government and fully fund the escrow account.
