The CNMI government is challenging Imperial Pacific International’s proposed liquidation plan, arguing that the casino license should be formally rejected as part of the bankruptcy proceedings.
In a filing with the U.S. Bankruptcy Court, Chief Solicitor Robert Glass Jr. contended the plan fails to treat the casino license as an “executory contract” under federal bankruptcy law. He argued that the proposal leaves the license in legal limbo instead of reverting to the CNMI Lottery Commission.
The government has previously stated that IPI owes more than $87 million in regulatory fees and taxes.
Under the court-approved sale process, winning bidder Team King (CNMI), LLC was given nine months to decide whether to assume the casino license. Team King declined in September, signaling it would not operate a casino under IPI’s license. The Commonwealth now wants the court to specify that the license should return to the government.
Glass also raised concerns about pending legislation that could amend the casino law to create a “conversion license” for Team King—potentially allowing it to bypass obligations tied to the original license.
“The court should require the casino license contract to be rejected and provide that if Team King acquires the casino license through a ‘grandfathered conversion license’ it should still be subject to the $2 million agreed payment to the debtor as outlined in the sale order,” Glass wrote.
IPI operated a casino in Saipan for four years before closing 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 won the bid for IPI’s casino assets during a court-approved auction on Feb. 26, 2025. Judge Robert Faris approved the sale on April 29, 2025, after resolving creditor objections.
Last month, IPI asked the court to approve its disclosure statement for the liquidation plan dated Oct. 31, 2025, and to authorize distribution of solicitation packages to creditors.
