DISTRICT Court for the NMI Designated Bankruptcy Judge Robert J. Faris has approved the stipulation of Imperial Pacific International’s and the committee of unsecured IPI creditors to establish a bidding procedure for the sale of the casino investor’s assets; to designate a stalking horse bidder; to schedule an auction and a sale hearing; and to establish assumption and assignment procedures.
According to the stipulation, the minimum bid requirement for all IPI assets is set at $10 million in cash.
“The Bidding Procedures shall govern the selection of the Stalking Horse Bidder, bids and proceedings related to the Auction and the sale of the Assets,” Judge Farris said in an order issued on Jan. 7.
A stalking horse bidder is an “initial bidder chosen by the debtor (or the seller) to set a baseline price for assets being sold through an auction process. The stalking horse bid serves as a starting point to attract other potential bidders and ensure a fair market price.”
The judge also authorized IPI and the committee to proceed with the sale transaction in accordance with the bidding procedures. IPI and the committee were likewise authorized to take any and all actions reasonably necessary or appropriate to implement the bidding procedures in accordance with the timeline set forth in the stipulation.
“The Sale Notice is approved, and no other or further notice of the proposed sale of the Assets, the Auction, the Sale Hearing, or the Sale Objection Deadline shall be required if [IPI] or the Committee serves and publishes the Sale Notice in the manner provided in the Bidding Procedures and this Order,” Judge Farris said.
The NMI Bankruptcy Court will retain jurisdiction over any and all matters arising from or related to the implementation or interpretation of its order.
The court earlier rejected IPI’s previous proposed bidding and sale procedures for its hotel casino and other real estate assets. The court, at the same time, granted the request of the committee of unsecured IPI creditors to hire Intrepid Investment Bankers LLC to market IPI’s properties for a higher sale price.
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.
According to the recently filed stipulation by the parties, IPI and the committee intend to sell all or substantially all of the casino’s assets.
IPI and the committee also requested the court to hold a sale hearing on March 25, 2025, at 9 a.m.
