IN a joint notice to the federal court, the Commonwealth Casino Commission and Imperial Pacific International LLC, through their attorneys, have informed the federal court that the parties have reached an agreement in principle as to the terms of a settlement.
“The parties are in the process of finalizing these terms through a settlement agreement and will provide notice to the court upon the entry of this agreement,” stated the notice filed in the District Court for the NMI on Friday.
Last month, Chief Judge Ramona V. Manglona extended the expiration of the temporary restraining order she issued against the casino commission to July 8 at 12 noon.
She extended the TRO based on the “joint stipulated motion to stay briefing on plaintiffs’ motion” filed by the Commonwealth Casino Commission and Best Sunshine International Ltd./Imperial Pacific International LLC.
For good cause shown, Judge Manglona said “the TRO issued by the Court on May 23, currently set to expire on June 8, 2022, is hereby extended for a period of 30 days to expire on Friday, July 8, 2022 at 12 p.m.”
Judge Manglona also ordered that the briefing on the plaintiffs’ complaint and emergency motion for TRO and order compelling arbitration filed on May 23, 2022 is stayed for a period of 30 days.
“The stay shall remain in place until (a) either of the parties notify this court that efforts to enter a settlement have failed and requests that a new briefing schedule and show cause hearing be set by this court; or (b) the parties request with good cause shown to further extend the stay; or (c) plaintiffs file a motion to dismiss their complaint,” the judge said in her order.
Judge Manglona also scheduled a status conference for Friday, July 1, 2022 at 9 a.m., and ordered the parties to appear.
The judge likewise vacated the order to show cause hearing scheduled for June 6.
On May 23, 2022, the federal court granted the motion of Best Sunshine/IPI and issued a TRO against the Commonwealth Casino Commission to prevent the latter from holding a hearing on May 24-25, 2022 to revoke IPI’s exclusive casino license.
Represented by attorneys Samuel Salyer and Kevin Abikoff, Best Sunshine/IPI stated that at the end of May 2022, IPI anticipated that it would begin receiving an infusion of $150 million of capital that would allow it to meet its obligations to its creditors, resume operations, and restart construction.
IPI recently signed a memorandum of understanding with the IH Group to provide that capital.
“If fully executed, the MOU provides that the financing tranche will be deposited with IPI before the end of May 2022, and the second tranche will be deposited during June 2022. This much needed investment — the benefits of which ultimately will inure to the CNMI — may never happen if the CCC is allowed to continue with its arbitrary and capricious attempt to revoke IPI’s license on the grounds of non-payment of fees and to refuse to consider IPI’s force majeure defenses at a hearing scheduled for May 24-25 2022 in breach of the arbitration agreement,” Best Sunshine/IPI said.
The casino commission is represented by Assistant Attorneys General Alison Nelson and Keisha Blaise.
