IMPERIAL Pacific International LLC has appealed to the U.S. Court of Appeals for the Ninth Circuit the District Court for the NMI’s denying the motion to stay limited receivership.
Through attorney Samuel Salyer, IPI also filed a notice of emergency motion to stay under Circuit Rule 27-3.
Last month, District Court for the NMI Chief Judge Ramona V. Manglona denied the request of IPI and some of its creditors to once again stay the limited receivership.
According to the judge, “When IPI can demonstrate that it has satisfied the pending judgments in this court, the court may reconsider whether to reinstate the stay or even terminate the limited receivership. Until such time, the court will not stay the receivership on the eve before the first auction is to take place when there are still outstanding judgment creditors against IPI. The receiver’s sale is not a final sale unless approved by the court. Once IPI can demonstrate that it has satisfied judgments for the current judgment creditors in this court, IPI may renew its motion to stay and retain its assets.”
The judge noted that “IPI has had an extensive history of delayed or non-payment to a multitude of creditors. This court has expended considerable resources and time giving IPI an opportunity to make amends with those creditors. Yet, despite numerous status conferences, orders to show cause, orders in aid of judgment — IPI’s promises have often been empty or delayed.”
The judge said even though IPI “can demonstrate that it has satisfied pending judgments of those who have assumed the receivership after U.S.A Fanter, including the Wang plaintiffs, the Genc plaintiffs, and N15 Architecture, there are still other creditors who have yet to be paid in and outside of the District Court.”
“While some creditors have had the benefit of competent counsel, at least one creditor has operated pro se and now has his claims compromised based on the promise of yet another delay in payment,” the judge added.
“Numerous creditors have come forward in this receivership to seek relief from IPI — both from this court and the Commonwealth Superior Court…. IPI was unable to report to the court the status of the various creditors that entered their appearances in this case through counsel. The receiver’s counsel, who also has other creditors as clients, reported that none of his three clients were paid a penny. Simply because some creditors, interestingly including creditors not from this court, were able to reach a more expeditious resolution, it does not mean that other creditors should continue languishing while payments are uncertain. The equities do not tilt in favor of defendant IPI,” the judge said.
The court-appointed limited receiver, Clear Management, through lawyer Michael White, has requested the court’s confirmation of the sales made following the closing of IPI’s gaming equipment auction on Oct. 7. The sales amount totaled $410,000.
In its motion filed in the District Court, IPI, the plaintiffs in Wang et al. v. Gold Mantis Construction Decoration (CNMI) LLC, the plaintiffs in Genc et al. v. Imperial Pacific International (CNMI) LLC, and N15 Architecture jointly stipulated and requested the federal court to enter an order staying the limited receivership established by the court.
IPI said it has reached settlements and made full payment to each judgment creditor and now wants to dissolve the limited receiver altogether.
IPI likewise noted that on Oct. 4, 2022, IPI and the Wang plaintiffs executed a settlement agreement that fully and finally resolved the over $5 million claim against IPI.
The Wang plaintiffs represented by attorney Aaron Halegua issued a press statement stating that they have collected $6.9 million from IPI.
