CHIEF Judge Ramona V. Manglona of the District Court for the NMI has denied the request of Imperial Pacific International LLC and some of its creditors to once again stay the limited receivership established by her court.
At the status conference held Thursday, Judge Manglona told the parties that the auction will go forward for the sale of IPI’s remaining gaming equipment identified in the court’s previous order.
Clear Management Limited, the court-appointed receiver, is scheduled to auction IPI’s remaining gaming equipment today, Friday, Oct. 7.
Judge Manglona also directed Clear Management and IPI to submit a list of creditors to the court.
She likewise informed Angel Playing Cards U.S.A. Inc., represented by attorney Richard Milller, that it may consummate the sale that has already been approved.
In a motion filed in 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 court to enter an order staying the limited receivership established by the court.
IPI said it has reached a settlement with and has made full payment to each judgment creditor.
IPI said it “recognizes the need to resolve certain issues, including obtaining court approval (where necessary) of its settlement agreements and satisfaction of judgments, making payment to the limited receiver of its reasonable costs incurred, and obtaining a court order regarding the disposition of any funds collected by the limited receiver. IPI, joined by the judgment creditors, thus brings this motion to stay the limited receivership in order to avoid incurring additional unnecessary costs while these matters are addressed.”
The motion 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.
“IPI made full payment of the amount due pursuant to this settlement agreement to the Wang plaintiffs and to a designated escrow agent on Oct. 4, 2022,” the motion stated.
On Oct. 3, 2022, IPI and the Genc plaintiffs reached an agreement for a compromise settlement of the Fair Labor Standards Act judgment in the amount of $477,935.91. IPI said it made the full payment pursuant to this agreement on Oct. 5, 2022.
On Oct. 3, IPI and N15 reached an agreement to fully and finally resolve N15’s judgment of $149,195.50 against IPI.
IPI said it made full payment of the amount due pursuant to this agreement on Oct. 4, 2022. N15 filed an acknowledgement of satisfaction of judgment and motion for withdrawal from the limited receivership on Oct. 5, 2022.
According to IPI, it has fully resolved its outstanding judgments with the Wang plaintiffs, the Genc plaintiffs, and N15 plaintiffs, and there are currently no unpaid judgments that need to be satisfied through a limited receiver.
“Accordingly, the court should stay the limited receivership prior to the planned Oct. 7, 2022, auction so as to avoid the unnecessary sale, and the related expense associated with such sale, of IPI gaming equipment,” IPI stated.
Clear Management Limited, as a receiver, is authorized to sell IPI’s casino gaming equipment pursuant to the court’s Oct. 26, 2021 memorandum decision based on an outstanding judgment owed by IPI to plaintiff USA Fanter Corp.
After IPI posted a supersedeas or appeal bond to secure the judgment owed to USA Fanter on Jan. 4, 2022, the court issued an order staying execution of USA Fanter’s judgment pending IPI’s appeal to the U.S. Court of Appeals for the Ninth Circuit.
On March 16, 2022, pursuant to a stipulation between the Wang plaintiffs and IPI, and based on the Wang plaintiffs’ judgment against IPI in the amount of $5,430,595.58 and pending fee petition, the court stayed the limited receivership and ordered that the Wang plaintiffs should assume all rights as to the limited receivership.
On June 14, 2022, the Genc plaintiffs moved to participate in the limited receivership on the basis of their judgment against IPI in the amount of $477,935.91 plus post-judgment interest and attorneys’ fees and costs.
On Sept. 13, 2022, N15 moved to participate in the limited receivership on the basis of its $149,195.50 judgment against IPI.
