THE Commonwealth Casino Commission and the Office of the Attorney General have been discussing the sale of Imperial Pacific International’s assets, including its casino license, CCC Vice Chair Ralph S. Demapan said on Wednesday.
In a closed-door meeting on Wednesday, CCC also discussed with its legal counsel, Assistant AG Lucy Blanco-Maratita, the latest updates on IPI’s Chapter 11 bankruptcy proceedings.
On Feb. 14, 2025, the attorneys for the Official Committee of Unsecured Creditors and IPI issued a notice of hearing set for March 25, 2025 at 9 a.m. The notice indicated that CCC has a role to play in the sale of IPI’s casino license. Variety was told that this prompted the House of Representatives to hold off on a bill that would put CCC “out of existence.”
According to the notice: “[I]n conjunction with the sale of the purchased assets, purchaser shall have an exclusive option to acquire the casino license for a period of nine months after the closing date (the ‘option period’). If purchaser is successful in reaching agreement with the Casino Commission regarding the assignment of the casino license to purchaser at purchaser’s sole expense, purchaser shall pay the seller an additional amount of $2,500,000 (the ‘Casino License Fee’) within ninety days of the entry of a final order by the bankruptcy court approving the assignment. If the option period expires without agreement between the purchaser and the Casino Commission for the assignment of the casino license, the casino license shall be deemed rejected pursuant to Section 365 of the Bankruptcy Code.”
CCC Vice Chair Ralph S. Demapan stated on Wednesday that they sought guidance from the OAG on how to ensure the commission is included on the list of beneficiaries once the sale of IPI assets, including the casino license, is completed.
He said according to the OAG, the commission should not take any action at this point, until the bankruptcy case is resolved.
However, Demapan said, “there is still a lot of work ahead of us.” The commissioners then discussed the details of the OAG’s response in a closed-door meeting with their legal counsel. “If there’s any information that needs to be out in the public, we are going to do that,” Demapan said.
Commissioner Thomas Manglona of Rota said, “It’s only good that we share information so the public is aware. We have important meetings. The people of the CNMI deserve to know. If we all share this information, maybe the public will have a different sentiment.”
IPI filed for Chapter 11 bankruptcy in the District Court for the NMI on April 19, 2024, saying it owed creditors over $165.8 million.
IPI operated a casino on Saipan for four years until the Covid-19 pandemic forced its closure in March 2020.
Chapter 11 bankruptcy allows a business corporation to restructure its debts and continue operating.
