IMPERIAL Pacific International is seeking a $7 million loan from a Hong Kong resident to pay for, among other things, the administrative expenses of the Chapter 11 bankruptcy petition that the embattled casino operator filed with the District Court for the NMI.
The Hong Kong-based lender’s name is Loi Lam. As of press time Thursday, Variety was unable to obtain more information about Loi Lam.
The $7 million loan was mentioned on Thursday by Chuck C. Choi, the Hawaii-based attorney who will represent IPI in the bankruptcy case.
Choi was on speaker phone as he fielded questions from Commonwealth Casino Commission Chairman Edward C. Deleon Guerrero during a meeting in the commission’s conference room at Springs Plaza in Gualo Rai at 10:30 a.m. on Thursday.
IPI Director Howyo Chi had to contact Choi so the lawyer could explain IPI’s $7 million loan, which is subject to approval by the federal court.
Choi told Deleon Guerrero that once approved by the court, the loan can provide a “potential payment” of the regulatory fee that IPI owes the commission.
According to the loan terms that IPI provided to the commission, $400,000 of the $7 million loan will be immediately available “upon entry of an interim order by the court” with the balance to be made available upon entry of a final order.
In May this year, the outstanding debts that IPI will pay using $400,000 of the $7 million loan are the following:
• Rent owed to the Department of Public Lands — $207,000
• Chapter 11 professionals —$100,000
• Payroll tax — $4,500
• Professional services — $3,000
• Commonwealth Utilities Corp. — $2,500
• Insurance — $50,000
• Salaries and wages — $30,000
• Auto expenses — $200
• Telephone/internet — $300
• Garbage disposal — $90
• General administrative expenses — $300
IPI said it will also allot $3.15 million of the $7 million for the casino commission in June, and an additional $3 million in July.
The loan, according to its terms, “shall be used to pay post-petition administrative expenses of the Chapter 11 case, including, but not limited to, payment for maintenance and preservation of the property of the debtor’s estate, rent, insurance, utility services, operating expenses and court-approved professional fees and such pre-petition expenses as may be approved by the bankruptcy court.”
Provided, however, “that not less than $500,000 shall be ‘carved out’ and set aside for (a) fees and expenses of professionals employed at the expense of the estate (including attorneys, accountants and appraisers); and (b) U.S. Trustee quarterly fees … as may be approved by the bankruptcy court, and as set forth in the budget approved by the lender, provided, however that the carve out for any committee professionals shall be limited to $150,000.”
