The unfinished Imperial Pacific International hotel-casino in Garapan.
Photo by Emmanuel T. Erediano
IN a status report filed in federal bankruptcy court on Monday, Imperial Pacific International informed the court that Team King Investment (CNMI) has executed the assignment lease with the Department of Public Lands.
IPI also reported that “approximately $7 million has been transferred to Team King’s Bank of Saipan bank account.”
IPI attorneys filed the status report, as required by the bankruptcy court, to update on the progress of IPI assets’ transfer to Team King.
According to IPI, one day after the last status conference held on July 24, DPL executed the assignment of the lease.
“The assignment has since been executed by the debtor and Team King and delivered to escrow,” the status report stated.
IPI noted that Team King’s principal, Hiroshi Kaneko, flew to Saipan to sign and notarize the escrow documents, including the assignment.
Moreover, IPI was informed that approximately $7 million has been transferred to Team King’s Bank of Saipan account.
“However, Team King also advises that due to regulatory issues, escrow will not be funded until Aug. 21, 2025,” the status report added.
IPI stated it intends to file a further statement in response to the court’s renewed order to show cause why the case should not be dismissed by Aug. 15.
IPI is represented by attorneys Chuck Choi, Allison Ito, and Charles McDonald.
Earlier, NMI Bankruptcy Designated Judge Robert J. Faris said he would dismiss IPI’s Chapter 11 petition if the court-approved sale does not close by Aug. 21 at 9 a.m.
In a renewed order to show cause issued on July 25, Judge Faris said:
“There have been unacceptable delays in the resolution of this case, at the expense of creditors — including Saipan Stevedore Company Inc., which has been storing the debtor’s 28 containers and has accumulated storage fees amounting to $272,580.
“The only realistic prospect of resolving this case is the closing of the court-approved sale of the debtor’s primary assets. But that sale has not closed due to disputes between the purchaser and the Commonwealth of the Northern Mariana Islands government,” he added.
Judge Faris ordered the parties to file responses to the order to show cause by 4 p.m. on Aug. 15.
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.
However, 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.
The parties previously reported progress toward closing the transaction, with most delays attributed to the finalization of the lease assignment and other closing documents requiring DPL’s approval.
