CHIEF Judge Ramona V. Manglona of the District Court for the NMI has granted the stipulated distribution of Imperial Pacific International’s gaming equipment auction proceeds as requested by judgment creditors.
IPI owes judgment creditors in federal and local courts — including the tax lien held by the CNMI Division of Revenue and Taxation against it — a total of $21,108,568.71.
The “Stipulation by Judgment Creditors Concerning the Distribution of Auction Proceeds,” dated Dec. 12, 2023, is between all the known judgment creditors of IPI, including the CNMI government and the limited receiver, Clear Management.
The stipulation sets forth a distribution plan for the nearly $1.5 million in available auction proceeds, as well as any funds that subsequently become available, to be distributed to the judgment creditors of IPI, including the CNMI government, in a fair, equitable and efficient manner.
At a hearing on Thursday, Judge Manglona overruled the objections of the Hughes Hubbard & Reed or HHR law firm and Özcan Genc concerning the distribution plan. Both plaintiffs are represented by attorney Richard Miller.
On Dec. 5, 2023, HHR, a New York law firm, sued IPI in Superior Court to recover unpaid legal fees and costs totaling almost $8.6 million.
Genc, for his part, has two claims against IPI. The first is a breach of contract claim brought on behalf of a class of 102 Turkish workers, and the second is claim pending against IPI under Title VII.
Fritz Pacific Project Development Services, through its principal, Alfredo Cabael, also has claims against IPI, amounting to $525,466.70.
Cabael appeared at the hearing pro se and told the judge that that he had submitted a promissory note to the court.
But Clear Management, the court-appointed receiver, through attorney Michael White, told the court that Cabael’s late participation should not hold up the distribution to the other creditors.
Judge Manglona ordered Cabael to file a claim for the amount owed by IPI so he could participate in future distributions.
White told the court that Clear Management is prepared to make distributions to the consenting judgment creditors and the CNMI government within 10 business days of the court approving the $1.46 million distribution plan.
“The limited receiver requests that the court order each of the consenting judgment creditors and the CNMI to email the limited receiver’s attorney within 48 hours of the court approving the distribution of the gaming proceeds, stating (a) the individual or entity name to which the check should be made out (i.e. the client name, attorney trust account, etc.), and (b) whether the check will be picked up from Michael White’s office or the address to which it should be mailed,” White said.
The following are IPI’s judgment creditors and the amount they will receive according to the distribution plan. The figures in parentheses indicate the amount IPI owes them.
• Winzy Corporation, ($179,217.50), $28,754.95
• USA Fanter Corp. Ltd., ($226,127.05), $26,609.31
• Kan Pacific Saipan Ltd., ($697,801.30), $52,545.42
• Kan Pacific Saipan Ltd., ($209,808.22), $11,536.79
• Art Man Corporation, ($106,890), $20,052.79
• USA Fanter Corp. Ltd., ($500,000), $27,493.67
• Joshua Gray, ($5,686,182.20), $326,843.18
• James Whang, dba South Pacific Lumber Company, ($795,236.88), $57,903.14
• Tang’s Corp., ($191,070.56), $24,681.65
CNMI court judgments:
• G4S, ($11,711.23), $11,711.23
• RC, ($69,722.25), $22,734.09
• Yu’s LLC, ($38,512.00), $21,017.93
• Atkins Kroll, ($78,403.34), $23,211.44
• Art Man Environmental Corp., ($83,555.78), $23,494.76
• Michael Dotts Law Office, ($396,625.62), $40,709.64
• Ecolab (Guam), ($17,629.84), $15,144.61
• GT Building Systems International, ($761,658.80), $56,056.78
• Hemine Ipwan Island, dba IPWAN Security Services, ($188,125.30), $24,519.70
• Fujitec Pacific Inc., ($2,679,255.45), $161,500.30
• Yantze Corp., ($248,000), $27,812.05
Tax lien:
• CNMI government, ($7,943,035.39), $455,666.58
