Imperial Pacific International Director Howyo Chi speaks during the revocation hearing in the governor’s conference room on March 1, 2024.
THE filing for Chapter 11 bankruptcy in the District Court for the NMI is part of Imperial Pacific International’s “comprehensive plan to restructure its financial obligations and position the company for a resilient comeback in the dynamic gaming industry,” IPI Director Howyo Chi said.
In a statement on Sunday, Chi said despite the temporary closure of its operations and the financial strain endured at the onset of the Covid-19 pandemic, “IPI remains steadfast in its commitment to its employees, stakeholders, and the CNMI.”
On Monday, Commonwealth Casino Commission Chairman Edward C. Deleon Guerrero issued an advisory stating that pursuant to IPI’s Chapter 11 bankruptcy petition and Notice of Automatic Stay on Complaint Nos. 2021-002 and 2021-003 issued on April 19, 2024, the casino commission has postponed its revocation deliberation set for April 22, 2024, until further notice.
Complaint 2021-002 pertains to IPI’s failure to maintain reserve funds for payroll while Complaint 2021-003 is for the casino operator’s failure to pay the regulatory fee due to the commission.
Chi said IPI’s filing for Chapter 11 bankruptcy is a “strategic move” that will pave the way for IPI to reorganize. Through this process, he said, IPI “aims to emerge as a stronger, more sustainable entity that will continue to contribute to the economic growth and prosperity of the CNMI community.”
“Our decision to file for Chapter 11 bankruptcy protection was made after careful consideration and with the long-term interests of our stakeholders in mind,” Chi added.
“We have arranged for sufficient debtor in possession financing that will ensure that IPI can meet its post-petition obligations, including making millions of dollars in payments to the Commonwealth Casino Commission once a settlement with the Commission is finalized. The Chapter 11 process will allow us to address our financial challenges head-on, while preserving jobs, honoring our commitments to vendors and suppliers, and revitalizing our operations to deliver exceptional gaming and entertainment experiences,” he said.
As part of its reorganization plan, he said, IPI will focus on enhancing operational efficiencies, optimizing its gaming offerings, and implementing robust measures to ensure the health and safety of its patrons and employees.
Additionally, Chi said, the company “remains committed to fulfilling its obligations to the CNMI government, including the completion of the Imperial Pacific Resort, a landmark project that will further elevate the tourism landscape of the region.”
“We are confident that the steps we are taking today will pave the way for a brighter future for Imperial Pacific International (CNMI) LLC,” Chi said.
“With the unwavering support of our dedicated team, loyal customers, and the CNMI community, we are poised to emerge from this process stronger and more resilient than ever before,” he added.
IPI, he said, is working closely with its legal and financial advisors to expedite the Chapter 11 bankruptcy process and achieve a successful reorganization.
“The company remains committed to transparency and will provide updates on its progress as it works towards a brighter tomorrow,” Chi said.
