THE federal bankruptcy court has rejected Imperial Pacific International’s proposed bidding and sale procedures for its hotel casino and other real estate assets.
The court at the same time granted the request of the committee of unsecured IPI creditors to hire Intrepid Investment Bankers LLC to market IPI’s properties for a higher sale price.
Chief Judge Ramona V. Manglona said, “This will be in the best interest of the estate.”
At a hearing last week, she likewise denied IPI’s request to employ Keen-Summit Capital Partners LLC as its real estate broker.
The court scheduled a status conference for Nov. 6 at 8:30 a.m.
On Sept. 23, IPI’s creditors requested the court to authorize them to retain Intrepid Investment Bankers LLC.
According to the committee of creditors, “The investment banker will bring the necessary expertise and industry connections to market the business effectively as a holistic business. Should this approach not succeed, the real estate broker proposed by the debtor [IPI] can then proceed with a real estate sale. This comprehensive and strategic asset disposition plan will benefit both the estate and creditors. Intrepid has been informed and understands that no sale may be consummated until after all creditors and parties in interest have received notice of the pending sale and have had an opportunity for a hearing before the United States Bankruptcy Court.”
IPI, through attorney Chuck Choi, requested the court for an order approving the proposed competitive bidding and sale procedures for the sale of IPI’s major assets.
Choi also requested the court for a hearing on Nov. 20, 2024 to consider the final approval of the sale of IPI’s property free and clear of liens and encumbrances to Loi Lam Sit — the “stalking horse purchaser” — or to a higher bidder.
A “stalking horse purchaser” refers to an initial bidder chosen by a bankrupt company to make the first offer on its assets. This bidder sets the minimum price that the assets can be sold for in a bankruptcy auction. The term “stalking horse” comes from the idea that the initial bid serves as a benchmark, encouraging other potential buyers to make higher offers.
According to IPI, Lam is a resident of Hong Kong and the general manager of Top Pride International Ltd., a wholesale distributor of cosmetic products.
IPI said its major real estate assets are its casino, which is housed in its hotel building situated primarily on 19,204 square meters of land leased from the CNMI Department of Public Lands pursuant to lease agreement No. LA-15-002S; and IPI’s ownership interest in Imperial Pacific Properties LLC, which holds a leasehold interest in eight lots adjacent to the leasehold property.
IPI filed for Chapter 11 bankruptcy in the District Court for the NMI on April 19, 2024, saying it owed creditors over $165.8 million.
IPI operated a casino for four years until the Covid-19 pandemic forced its closure in March 2020.
Chapter 11 bankruptcy allows a business corporation to restructure its debts and continue operating.
