IMPERIAL Pacific International LLC has filed for Chapter 11 bankruptcy in the District Court for the NMI, saying it owes creditors over $165.8 million.
Chapter 11 bankruptcy allows a business corporation to restructure its debts and continue operating.
IPI filed for bankruptcy on Friday, April 19, 2024.
IPI manager Howyo Chi, represented by attorney Charles McDonald, signed the bankruptcy petition and requested relief in accordance with Title 11 of the United States Code.
“I have been authorized to file this petition on behalf of the debtor,” Chi said. “I have examined the information in this petition and have a reasonable belief that the information is true and correct. I declare under penalty of perjury that the foregoing is true and correct,” Chi added.
Among the IPI creditors with the largest unsecured claims were the CNMI Treasury, $62 million for casino license fees; MCC International, $34.9 million for construction services; Commonwealth Casino Commission, $17.6 million for licensing fees and penalties; the law offices of Hughes Hubbard & Reed, $8.58 million for legal fees; Century Estate Investment Ltd., $8 million for an unpaid loan; CNMI Division of Revenue and Taxation, $7.9 million for unpaid business gross revenue tax; and Joshua Gray, $5.68 million for default judgment.
IPI also owes money to the Internal Revenue Services ($4 million), the U.S. Department of Labor-Wage and Hour Division ($950,000), and the U.S. Department of Justice-Civil Division ($1.46 million — labeled as “contingent disputed”).
Today, Monday, April 22, the Commonwealth Casino Commission will reconvene to decide whether or not to revoke IPI’s exclusive casino license.
For its part, the High Court of Hong Kong has ordered the liquidation of IPI Holdings, the Hong Kong-listed parent company of IPI CNMI.
