FOLLOWING a stipulation from the parties that resolved the objection of the CNMI government and Joshua Gray, District Court for the NMI Bankruptcy Judge Robert J. Faris approved the sale of Imperial Pacific International’s assets to the successful bidder, Team King Investment, on Tuesday, April 29.
IPI operated a casino in Saipan for four years until the Covid-19 pandemic forced its closure in March 2020.
On April 19, 2024, IPI filed for Chapter 11 bankruptcy, citing over $165.8 million in debts. Chapter 11 allows corporations to restructure while continuing operations.
In a court-approved auction held on Feb. 26, 2025, Team King Investment (CNMI), LLC was the successful bidder for IPI’s casino assets.
Team King’s bid was $12.95 million cash plus an option to acquire the casino license and assume certain liabilities of IPI.
IPI asked the bankruptcy court to approve the sale but the CNMI government and former IPI employee Joshua Gray, who has a $5.6 million judgment against IPI for discrimination and retaliation, opposed it. They also wanted to depose Team King’s principal, Hiroshi Kaneko.
According to the stipulation by IPI, the Committee of Unsecured Creditors, the Commonwealth Casino Commission and the secured creditors (the CNMI government, the Law Office of Michael Dotts, Gray, USA Fanter), “have reached a resolution of their secured claims and have agreed to withdraw their objections to the Sale Motion” conditioned upon approval of the stipulation by the court.
If the court approves the stipulation, the escrow agent will set aside and pay from the sale proceeds $5 million to the CNMI Division of Revenue and Taxation; $1.5 million to be distributed to the secured creditors; and the remaining assets to be held in trust by the escrow agent.
IPI also agreed to dismiss its appeal of Gray’s judgment in the Ninth Circuit Court of Appeals upon the stipulation’s approval.
Likewise, IPI agrees to dismiss pending court cases relating to the annual casino license fee and casino regulatory fee.
According to court information, the CNMI DRT has a secured claim of $7,656,225.69 and unsecured claim of $77,512,850; CCC has a “non-priority” claim of $17,625,850; the Law Office of Michael Dotts has a secured claim of $247,973.70; Gray has a secured claim of $5,467,083.29; and USA Fanter has a secured claim of $425,408.08.
Due to a previous distribution of IPI vehicle auction proceeds, Gray’s and Fanter’s claims have been reduced to $267,276.16, the stipulation stated.
Judge Faris approved the stipulation resolving the objections to the sale motion and approved the proposed sale of IPI assets to Team King.
IPI also owes $4 million to the Internal Revenue Service, $950,000 to the U.S. Department of Labor-Wage and Hour Division, and $1.46 million to the U.S. Department of Justice-Civil Division, listed as “contingent disputed.”
