XU Zhongxiao, the representative of the investment firm that loaned Imperial Pacific International $9 million was also listed as a member of Imperial Pacific International Holdings Ltd.’s board of executive directors, according to IPIH’s 2021 annual report.
Xu was the signatory and representative of Century Estate Investment Ltd. which loaned IPI $9 million on Dec. 15, 2022.
The promissory note was signed by Zheng Dongting as the representative of IPI.
According to the promissory note, the first installment of $3 million was due on April 15, 2023; the second installment, on Aug. 15, 2023; and the third installment is due on Dec 15, 2023.
IPI listed its personal properties as part of the mortgage.
Century Estate, an investment firm from the British Virgin Islands, now wants to intervene in the receivership proceedings involving Joshua Gray’s lawsuit against IPI.
Century Estate is also opposing the petition of Gray to appoint a receiver to sell the casino investor’s properties.
Represented by attorney Matthew Gregory, Century Estate stated that it has first priority as a secured creditor, having executed a loan to financially rescue IPI.
“That loan was secured by a mortgage on the assets that, notably, plaintiff proposes to put into receivership. By virtue of its prior, secured mortgage interest, Century Estate is prior and senior to the rights of all other parties. The amount due and owing on Century Estate’s loan to IPI exceeds the value of the court’s judgement or judgements by any other party or creditor,” Gregory said.
Century Estate’s motion to intervene in the receivership proceedings was still pending as of Thursday.
Gray, IPI’s former director of operations, prevailed in his discrimination lawsuit against the casino investor.
On May 30, 2023, the District Court for the NMI granted Gray a default judgment against IPI. On the following day, the court entered a judgment awarding Gray $5,686,182.20 against IPI.
On Oct. 26, 2021, the District Court appointed Clear Management as receiver for the purpose of selling IPI’s gaming equipment to satisfy a judgment awarded to USA Fanter Corporation Ltd.
USA Fanter sued the casino investor for its failure to pay the full amount due to the plaintiff under their construction contract for labor and materials provided for the improvement of IPI’s real property in Garapan.
The lawsuit stated that IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
The court issued a final judgment in favor of USA Fanter.
After the court allowed Gray to participate in the receivership proceedings, he applied for a writ of execution, which the court granted, to have IPI’s vehicles, liquor, crystal dragons, computer hardware, furniture and equipment, including casino-related and security equipment, and other non-exempt personal property sold in an auction to satisfy judgment.
Gray, represented by attorney Aaron Halegua, will file a response today, Friday, to ask IPI and Century Estate to provide more documentation regarding the loan, Variety learned.
