AN investment firm from the British Virgin Islands wants to intervene in the receivership proceedings involving Joshua Gray’s lawsuit against Imperial Pacific International LLC.
The firm, Century Estate Investment Limited, loaned IPI $9 million.
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, Chief Judge Ramona V. Manglona of the District Court for the NMI appointed Clear Management as receiver for the purpose of selling IPI’s gaming equipment to satisfy a judgment awarded to USA Fanter Corporation Ltd.
USA Fanter sued the casino investor for its failure to pay the full amount due to the plaintiff under their construction contract for labor and materials provided for the improvement of IPI’s real property in Garapan.
The 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.
On Monday, Century Estate Investment Limited, represented by attorney Matthew T. Gregory, filed a motion to intervene based on a loan it gave IPI.
According to the motion, on Feb. 1, 2022, Century Estate Investment Limited provided a loan to IPI for “the purpose of maintaining ongoing construction, surviving its debts and reviving low cash flow.”
IPI borrowed substantial funds from Century Estate Investment Limited to consolidate debts and to continue in business and continue ongoing construction, Gregory said.
“In a word, Century Estate Investment Limited rescued IPI from its debts and cash flow problems,” he added.
“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 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 lawyer said.
“Century Estate Investment Limited now seeks to intervene in this action in order to have the right to move forward and order liquidation of assets toward mitigation of losses from its outlay under the loan,” he added.
IPI owes $9 million plus 8% interest per annum, Gregory said.
“Due to the amount of the judgment, defendant has defaulted on the loan, and the total amount remains due to Century Estate Investment Limited,” he added.
Gregory asked the court to allow his client to intervene so that it may protect its interest in the collateral.
According to the promissory note, 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.
