CHIEF Solicitor J. Robert Glass Jr. informed the federal bankruptcy court on Monday that Imperial Pacific International had issued a check to the Department of Public Lands in the amount of $209,070.
In a notice filed in court, Glass said, “On June 21, 2024, this court held a hearing on Debtor’s First Day Motions where Debtor indicated they had ‘earmarked’ money for payment to the Department of Public Lands from the initial $400,000 loan that was approved by the Court as part of the debtor-in-possession or DIP interim financing.”
On June 21, DPL received a check for the overdue lease payment and the penalty/interest due for the lateness of the payment for $209,070, Glass said.
“While a check was provided to the DPL for the payment, as of this date, the check has not yet cleared. The Commonwealth will notify the Court once the check clears and the funds are deposited with the Department of Public Lands,” Glass added.
The court, on May 30, granted an interim motion authorizing IPI to obtain an initial advance of $400,000 from a lender, Loi Lam Sit, in a debtor-in-possession financing proposal or DIP.
IPI said it has also secured the remaining $6.6 million of the $7 million loan.
On Friday, Sit, through attorney Joey San Nicolas, agreed to lend IPI another $1 million to pay for, among other things, fees and operating expenses.
IPI filed for Chapter 11 bankruptcy in the District Court for the NMI on April 19, saying it owes creditors over $165.8 million.
According to the CNMI government, the casino investor has no ability to generate revenue or operate as a casino and has “no business to reorganize.” The federal bankruptcy court should convert IPI’s Chapter 11 petition to Chapter 7, the CNMI government added.
Under the U.S. Bankruptcy Code, Chapter 11 bankruptcy allows a business corporation to restructure its debts and continue operating.
Chapter 7 provides for the liquidation of a debtor’s property and distribution of proceeds to creditors.
