The unfinished Imperial Pacific International hotel-casino in Garapan.
Photo by Bryan Manabat
IMPERIAL Pacific International and the Committee of Creditors are confident the sale of IPI’s casino assets will close soon.
In response to the renewed order to show cause by the bankruptcy court, IPI stated it is “confident that Team King will consummate the transaction.”
According to IPI, its Chapter 11 petition should not be dismissed on Aug. 21, 2025, for the following reasons:
• As stated in the debtor’s pre-status conference report, the Department of Public Lands executed the assignment of the DPL Lease to Team King Investment (CNMI), LLC.
• As noted in the committee’s pre-status conference report, the assignment was recorded outside of escrow by DPL.
• Security Title Escrow is holding approximately $3.295 million, consisting of the initial 10% deposit of the $12.95 million purchase price and $2 million wired directly into escrow to avoid banking delays.
• Approximately $8 million available to consummate the transaction is on deposit at the Bank of Saipan.
• The remaining balance (approximately $2 million) will be wired directly into escrow this coming week.
The Committee of Creditors noted that IPI reported that the assumption and assignment of the debtor’s ground lease agreement (LA 15-002S) with DPL to Team King has been executed and recorded.
“Team King now must fund the escrow account with the sale proceeds and promptly close the sale,” the committee said. “The Committee understands that Team King’s transfer of a significant portion of the sale proceeds to the Debtors’ escrow account is currently undergoing the regulatory identity verification required for international transfers from Hong Kong to Saipan. This has unfortunately caused a delay in funding the escrow.”
The committee added that it is optimistic the regulatory review will be completed soon, allowing the sale to close promptly.
In a previous renewed order to show cause, NMI Bankruptcy Designated Judge Robert J. Faris said he would dismiss IPI’s Chapter 11 petition if the court-approved sale did not close by Aug. 21 at 9 a.m.
IPI operated a casino in Saipan for four years before closing in March 2020 due to the Covid-19 pandemic. The company filed for Chapter 11 bankruptcy on April 19, 2024, citing more than $165.8 million in liabilities.
Team King Investment (CNMI) LLC won the bid for IPI’s casino assets during a court-approved auction held on Feb. 26, 2025. Judge Faris approved the sale on April 29, 2025, after resolving creditor objections.
The sale has been delayed due to a dispute over the assignment of IPI’s ground lease (LA 15-002S) with the Department of Public Lands, covering 19,204 square meters of land.
