The United States Courthouse in Gualo Rai, Saipan.
IMPERIAL Pacific International Director Howyo Chi on Thursday informed the Commonwealth Casino Commission that the District Court for the NMI had granted on an interim basis IPI’s motion for an order authorizing the casino investor to obtain post-petition secured indebtedness.
IPI sought a $7 million loan from Hong Kong resident, Loi Lam Sit. However, Chief Judge Ramona Manglona approved $400,000 only of the amount.
The $400,000 will now be immediately available, Chi told the commission after appearing in a status conference at the U.S. courthouse.
The status conference was held around the same time that the casino commissioners convened for their regular monthly meeting on Thursday morning.
Assistant Attorney General J. Robert Glass and Aaron Halegua, pro hac vice attorney for Joshua Gray, argued in opposition to IPI’s motion.
IPI’s former director of operations, Gray successfully sued the casino investor for racial discrimination and wrongful termination.
In granting IPI’s motion on an interim basis, Judge Manglona also ordered that the debtor provide a copy of the loan agreement with all specifics to the U.S. trustee for review.
The U.S. court also adopted the trustee’s recommendation that the debtor’s motion is granted only to the extent that the amended term sheet or loan agreement is consistent with the terms of the court order.
The court instructed Chuck C. Choi, the Hawaii-based attorney representing IPI in the bankruptcy case, to submit a proposed order and circulate it among the parties for their approval.
According to the loan terms, IPI will use the $400,000 for the following:
• Rent owed to the Department of Public Lands — $207,000
• Chapter 11 professionals —$100,000
• Payroll tax — $4,500
• Professional services — $3,000
• Commonwealth Utilities Corp. — $2,500
• Insurance — $50,000
• Salaries and wages — $30,000
• Auto expenses — $200
• Telephone/internet — $300
• Garbage disposal — $90
• General administrative expenses — $300
Judge Manglona also denied without prejudice Gray’s motion for relief from stay. She said a final hearing is set for June 21, 2024 on the first day motions. The debtor’s supplements as to all motions are due no later than June 11, 2024, and any objections to the motions are due no later than June 17, 2024, the judge said.
For its part, the casino commission, according to its chair, Edward C. Deleon Guerrero, will “simply have to wait until we get further instructions from the Office of the Attorney General regarding the Chapter 11 bankruptcy petition that IPI filed with the U.S. court.”
