CHIEF Judge Ramona V. Manglona of the District Court for the NMI has granted the request of USA Fanter Corporation Ltd. to appoint Clear Management Ltd. to administer, collect, or sell any casino gaming property in which defendant-judgment debtor, Imperial Pacific International (CNMI) LLC, has an interest, and to perform any other acts required to satisfy the judgment of $2,089,345.28.
At the hearing on Thursday, Timothy Shepherd appeared via video teleconference on behalf of Hong Kong-based Clear Management, and responded to the inquiries of the court.
Judge Manglona, for her part, ordered the parties “to meet and confer to submit the details of the terms and conditions of receivership.”
USA Fanter, represented by attorney Colin Thompson, filed a memorandum in support of a motion for the limited appointment of receiver in aid of execution.
He said IPI has failed to respond to its former contractor’s demands for payment in satisfaction of the judgment.
“The appointment of a receiver should be granted where, as here, the judgment debtor’s conduct evidences a risk of insolvency,” Thompson added.
“Further, the appointment of a receiver is necessary when the judgment debtor’s holdings are illiquid and complex because enforcement of the judgment by the sheriff would be impractical and unduly burdensome, and an ordinary sheriff’s sale is unlikely to result in the recovery of the full value of such assets. Finally, the U.S. Marshal’s office will not engage in the sale of the assets in this civil matter,” Thompson said.
At the hearing, he said he will submit the receivership terms and conditions by Aug. 13 for the court’s review.
Attorney Stephen Nutting appeared for IPI whose chief executive officer, Ray Yumul, and vice president for external affairs, Tao Xing, were also present at the hearing.
Thompson said he is working with other creditors to reach an agreement on a fair and orderly way to sell IPI’s various assets and distribute the proceeds.
If no agreement is reached, those creditors reserve the right to object to any proposed distribution of the sale proceeds for the assets that are the subject of this motion, he added.
The federal court earlier granted USA Fanter’s request to issue a writ of execution against IPI so that its vehicles and casino gaming machines could be seized and sold to satisfy the over $2 million judgment previously entered against the Saipan casino investor which is facing several other lawsuits filed by other companies over nonpayment of services, among other allegations.
