AT a status conference hearing last week, Chief Solicitor J. Robert Glass Jr. informed Bankruptcy Court Judge Robert J. Faris that the Department of Public Lands has approved the lease assignment to Team King Investment.
Glass also said the July 15 DPL letter did not introduce new terms, responding to attorney Christopher Wong, who represents the committee of creditors. Wong had argued that the CNMI should be sanctioned for its failure to assign the lease.
Team King, represented by attorney Louie Yanza, raised concerns about the July 15 DPL letter, citing what they believe to be additional terms.
But Glass said the CNMI does not need to sign off on any document and reiterated that the lease transfer was already approved.
Yanza then stated that Team King is ready to close the sale.
Imperial Pacific International operated a casino on Saipan for four years before closing in March 2020 due to the Covid-19 pandemic. The company filed for Chapter 11 bankruptcy on April 19, 2024, citing more than $165.8 million in liabilities.
Team King Investment (CNMI) LLC won the bid for IPI’s casino assets during a court-approved auction held on Feb. 26, 2025. Judge Faris approved the sale on April 29, 2025, after resolving objections from creditors.
However, the sale has been delayed due to a dispute over the assignment of IPI’s ground lease (LA 15-002S) with the Department of Public Lands, which covers 19,204 square meters.
The parties recently reported that progress is being made toward closing the transaction, with most delays attributed to the finalization of the lease assignment and other closing documents requiring DPL’s approval.
In a supplement to the status report, the parties attached a July 15 DPL letter addressed to Hirosho Kaneko, principal of Team King, and signed by DPL Secretary Sixto Igisomar, stating the department’s position of “conditional no objection” to proposed lease assignment agreement No. LA 15-002S (Garapan property).
According to the letter, the DPL and Team King’s proposed agreement sets for Team King these requirements:
– Pay a $2,500 administrative assignment fee, as well as other fees on the date of closing.
– Convert $113,999 worth of cryptocurrency (Bitcoin) to U.S. dollars and deposit the funds into an FDIC-insured financial institution within 60 days.
– Submit required insurance and bonding instruments, along with full construction plans and blueprints, for the purpose of conducting a cost-of-completion analysis within 90 days.
– Provide a comprehensive hotel development and operation plan, and execute signed hotel management contracts or operator agreements clearly identifying roles and responsibilities within 60 days.
– Deliver to DPL the “Final Assignment of Lease,” duly signed and legally binding, immediately after closing.
– Provide all necessary permits from regulatory agencies (DPW, Zoning, CRM) as soon as they are obtained.
– Submit a notarized affidavit, as discussed in the June 26, 2025, meeting, attesting to conversion of funds and financial readiness; construction and assurance mechanisms; and accuracy and completeness of all information and representations made.
Judge Faris set Aug. 11, 2025, as the deadline for the next status report and for any motions to be filed. Responses are due Aug. 15, and replies by Aug. 20.
He scheduled a hearing for Aug. 21 at 9 a.m., noting that it will be the final continuation of the matter.
