CHIEF Judge Ramona V. Manglona of the District Court for the NMI has denied Century Estate Investment Ltd.’s motion to intervene in the receivership proceedings involving Joshua Gray’s lawsuit against Imperial Pacific International LLC.
At a hearing on Thursday, Judge Manglona also granted Gray’s petition for order to show cause to appoint a limited receiver in his case.
In its motion to intervene, Century Estate, an investment firm based in the British Virgin Islands, stated that it loaned IPI $9 million for “the purpose of maintaining ongoing construction, surviving its debts and reviving low cash flow.”
IPI borrowed substantial funds from Century Estate to consolidate debts and to continue in business and continue ongoing construction, the motion to intervene stated.
“The substantial funds were provided by Century Estate Investment Limited on the basis of a loan secured under a mortgage of IPI’s collateralized assets. Thus, Century Estate Investment Limited has a secured interest in IPI assets that is prior to and superior to any other party. Defendant has not made repayment to Century Estate Investment Limited and is in full default of the loan,” the motion to intervene added.
Century Estate was represented by attorneys Matthew Gregory and Patricia Ray.
Represented by attorneys Aaron Halegua and Bruce Berline, Gray, IPI’s former director of operations, prevailed in his discrimination lawsuit against the casino investor.
On May 30, 2023, the District Court granted Gray a default judgment against IPI. On the following day, the court entered a judgment awarding Gray $5,686,182.20 against IPI.
On Oct. 26, 2021, the federal court appointed Clear Management as receiver for the purpose of selling IPI’s gaming equipment to satisfy a judgment awarded to USA Fanter Corporation Ltd., which sued IPI for failing to pay the full contract amount due for labor and materials it provided for the improvement of IPI’s real property in Garapan.
USA Fanter’s lawsuit stated that IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
The judge issued a final judgment in favor of USA Fanter.
After the court allowed Gray to participate in the receivership proceedings, he applied for a writ of execution, which the court granted, requesting to have IPI’s vehicles, liquor, crystal dragons, computer hardware, furniture and equipment, including casino-related and security equipment, and other non-exempt personal property sold in an auction to satisfy judgment.
Gray also requested the court to appoint Clear Management as receiver in his case, but this was opposed by IPI and Century Estate.
Xu Zhongxiao, the representative of Century Estate that loaned IPI $9 million, was also listed as a member of Imperial Pacific International Holdings Ltd.’s board of executive directors, according to IPIH’s 2021 annual report.
Based on the promissory note between Century Estate and IPI, the first installment of $3 million was due on April 15, 2023; the second installment on Aug. 15, 2023; and the third installment is due on Dec. 15, 2023.
IPI listed its personal properties as part of the mortgage.
