IMPERIAL Pacific International LLC owes judgment creditors in federal and local courts, including the tax lien held by the CNMI Division of Revenue and Taxation against it, a total of $21,108,568.71.
A list of IPI judgment creditors and the judgments the casino investor owed was provided as an attachment in Joshua Gray’s petition for an order to show cause concerning the distribution of auction proceeds.
IPI’s former director of operations, Gray successfully sued the company for racial discrimination and wrongful termination.
Represented by attorneys Aaron Halegua and Bruce Berline, Gray was awarded by the federal court a total of $5.68 million in compensatory and punitive damages.
After the court allowed Gray to participate in the receivership proceedings, he applied for a writ of execution, which the court granted.
On Wednesday, Gray’s attorney, Halegua, filed a petition for an order to show cause concerning the distribution of the proceeds from the liquidation of IPI’s gaming equipment.
The lawyer also attached a copy of the “Stipulation by Judgment Creditors Concerning the Distribution of Auction Proceeds,” dated Dec. 12, 2023.
The stipulation is between all of the known judgment creditors of IPI, the CNMI, which holds a tax lien against IPI, and the limited receiver, Clear Management.
Halegua said the stipulation sets forth a distribution plan for the nearly $1.5 million in available auction proceeds, as well as any funds that subsequently become available, to be distributed to the judgment creditors of IPI, including the CNMI, in a fair, equitable, and efficient manner.
“The Stipulation also sets forth a procedure that provides an opportunity for any party to object to the Distribution Plan before any funds are distributed. Accordingly, based on the Stipulation, Gray hereby requests that the Court issue an Order to Show Cause that sets a hearing date for approval of the Distribution Plan and requires any objecting party to file its objection in writing by a specific deadline,” Halegua stated.
The following are IPI’s judgment creditors in federal court:
• Winzy Corporation, $179,217.50
• USA Fanter Corp. Ltd., $226,127.05
• Kan Pacific Saipan Ltd., $697,801.30
• Kan Pacific Saipan Ltd., $209,808.22
• Art Man Corporation, $106,890
• USA Fanter Corp. Ltd., $500,000
• Joshua Gray, $5,686,182.20
• James Whang, dba South Pacific Lumber Company, $795,236.88
• Tang’s Corp., $191,070.56
CNMI court judgments:
• G4S, $11,711.23
• RC, $69,722.25
• Yu’s, LLC, $38,512.00
• Atkins Kroll, $78,403.34
• Art Man Environmental Corp., $83,555.78
• Michael Dotts Law Office, $396,625.62
• Ecolab (Guam), $17,629.84
• GT Building Systems International, $761,658.80
• Hemine Ipwan Island, dba IPWAN Security Services, $188,125.30
• Fujitec Pacific Inc., $2,679,255.45
• Yantze Corp., $248,000
Tax lien:
• CNMI, $7,943,035.39
On Oct. 26, 2021, the court issued a memorandum decision, pursuant to Federal Rule of Civil Procedure 66 and Local Rule 63.1, establishing a receivership in equity that appointed Clear Management as the limited receiver to liquidate IPI’s casino gaming equipment.
Since the limited receivership commenced, Clear Management has conducted several auctions of IPI’s gaming equipment.
As of Dec. 1, 2023, Clear Management reports that the first seven auctions, after the deduction of its commissions and attorneys’ fees, have produced approximately $1.5 million to be distributed and this amount may increase as a result of additional future auctions of the remaining gaming equipment.
According to the stipulation, the consenting judgment creditors agree that the auction proceeds should be distributed promptly and request that the court order such action.
