IN his seventh status report to the federal court, attorney Michael Dotts, who represents Imperial Pacific International LLC, stated that there was a shortfall on payroll that was due on Feb. 26, 2021.
“The total net payroll was $83,860.55. IPI was able to pay about $69,894.21. The balance still owing ($13,966.34) is being sent from Hong Kong and is expected Wednesday or Thursday this week,” Dotts said.
IPI’s next payday is March 12, Friday, he added.
Dotts also reported to the court that IPI may soon be able to repatriate its workers from Mongolia.
The Mongolians have applied to work under CW-1 visas with IPI, but Dotts said, “It is unlikely that this is possible and IPI should know the status of the CW visa applications by the end of this week or early next week.”
If the CW visas are denied, IPI will then work on the repatriation of the Mongolians, Dotts added.
He likewise informed the court that IPI employee housing still has power, and food services have continued without interruption for all H-2B workers.
As ordered by the court, “construction work at the IPI resort in Garapan remains suspended,” Dotts said.
District Court for the NMI Chief Judge Ramona V. Manglona, for her part, will resume the receivership hearing for IPI on March 5.
On Monday, she ordered IPI to produce all relevant payroll information and supporting documents pertaining to back wages owed under the 2019 consent judgment totaling approximately $600,000 by Wednesday, March 3, 2021, at 5 p.m.
The judge also ordered IPI to prepare and produce a complete list of assets no later than Wednesday, March 3, 2021 at 5 p.m.
Regarding the nomination of Joyce Tang of the Civille & Tang, PLLC law firm as receiver of IPI, the judge ordered the parties to submit any objection also by Wednesday, March 3, 2021.
Judge Manglona previously found IPI, IPI Holdings Ltd., and IPI chairwoman Cui Li Jie in contempt of court for violating the previous consent judgment with the U.S. Department of Labor and for not paying IPI’s current employees for over two months.
At the status hearing on Monday, IPI, through Dotts, and IPI chairwoman Cui Li Jie, through attorney Juan Lizama, expressed no objection to the nominated receiver and agreed to proceed with the receivership.
But Dotts also told the court that IPI would not be able to pay approximately $600,000 in wages owed to workers who have been repatriated.
He likewise raised the potential legal issue of the CNMI government’s tax lien on IPI’s CNMI assets “that may require more liquidation than originally contemplated.”
At the hearing, the USDOL was represented by attorneys Boris Orlove and Charles Song while attorney Joyce Tang appeared via Zoom.
