IMPERIAL Pacific International LLC will be placed in receivership and its assets liquidated if no payment for the remaining back wages of current employees and the consent judgment is received by the U.S. Department of Labor in the next 30 days, District Court for the NMI Chief Judge Ramona V. Manglona said on Thursday.
She ordered IPI, IPI Holdings Limited and IPI chair Cui Li Jie to pay the current employees’ remaining back wages; the balance of the consent judgment, $1,182,793; and to create an escrow account to cover future employees in the amount of $800,000.
She likewise ordered IPI to pay the balance owed to the workers and submit a status report to the court no later than March 1, 2021.
She scheduled a hearing for March 31 for a status update on the balance of the consent judgment.
The judge told the parties that she will entertain written stipulation regarding the court’s contempt findings that may be adopted by the court.
In addition, she rejected IPI’s request to lift the stop work order she earlier issued, but added that she will allow non-construction employees, such as administrative personnel, security, and staffers preparing meals to return work.
It was USDOL attorney Boris Orlov who recommended that IPI be placed in receivership if the full amount of the consent judgment payment is not received in 30 days.
Orlov said IPI should be allowed to come up with the funds, from any sources, and if not, to have a receiver appointed by the court to sell some IPI assets to satisfy the judgment.
“We believe a receiver is a good option considering we are off island. And having somebody local handling it is probably the best person to do that,” Orlov said.
Local attorney Michael White’s name was mentioned by the parties as a probable candidate for federal receiver.
Orlov also told the court that IPI has made a $233,000 payment to USDOL of which $36,000 went to a group of H-2B workers who were underpaid while $197,000 was for civil money penalties.
IPI attorney Michael Dotts, for his part, told the court that IPI has $400,000 on the way from Hong Kong by wire transfer through a Guam payroll processing company.
“It [was] sent on Jan. 22 and it has not arrived in the account yet,” he added.
He said once the $400,000 arrives in the account, payroll 3 will be paid on time by today, Friday.
In his status report submitted to the court on Jan. 27, Dotts said partial distribution for 2021 pay periods 1 and 2 took place Wednesday.
