NMI Bankruptcy Designated Judge Robert J. Faris said he will dismiss Imperial Pacific International’s Chapter 11 petition if the court-approved sale does not close by Aug. 21 at 9 a.m.
In a renewed order to show cause why the case should not be dismissed, issued on July 25, Judge Faris said:
“There have been unacceptable delays in the resolution of this case, at the expense of creditors — including Saipan Stevedore Company Inc., which has been storing the debtor’s 28 containers and has accumulated storage fees in the amount of $272,580.
“The only realistic prospect of a resolution of this case is the closing of the court-approved sale of the debtor’s primary assets. But that sale has not closed due to disputes between the purchaser and the Commonwealth of the Northern Mariana Islands government,” he added.
According to the judge, “If the court-approved sale does not close, there would be no purpose in continuing this case any longer, and dismissal would be in the best interests of creditors and the estate.”
IPI operated a casino in Saipan for four years before closing in March 2020 due to the Covid-19 pandemic. The company filed for Chapter 11 bankruptcy on April 19, 2024, citing more than $165.8 million in liabilities.
Team King Investment (CNMI) LLC won the bid for IPI’s casino assets during a court-approved auction held on Feb. 26, 2025. Judge Faris approved the sale on April 29, 2025, after resolving objections from creditors.
However, the sale has been delayed due to a dispute over the assignment of IPI’s ground lease (LA 15-002S) with the Department of Public Lands, which covers 19,204 square meters.
The parties previously reported that progress was being made toward closing the transaction, with most delays attributed to the finalization of the lease assignment and other closing documents requiring DPL’s approval.
At a recent status conference hearing, Chief Solicitor J. Robert Glass Jr. informed the bankruptcy judge that the Department of Public Lands had approved the lease assignment to Team King Investment.
Judge Faris ordered the parties to file responses to the order to show cause by 4 p.m. on Aug. 15.
