In the background, IPI’s unfinished hotel-casino stands between buildings in downtown Garapan.
Photo by Bryan Manabat
IN a joint pre-status conference report, the parties in Imperial Pacific International’s Chapter 11 bankruptcy case have informed the federal court that Team King Investment and the Department of Public Lands are finalizing the form of the assignment lease and other related documents.
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 over $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. Federal Judge Robert J. Faris approved the sale on April 29, 2025, after resolving objections from creditors.
However, the sale has been delayed due to a dispute involving the assignment of IPI’s ground lease (LA 15-002S) with DPL, which covers 19,204 square meters. As of the latest report, DPL has not yet signed the lease assignment, while Team King has not provided all the requested information or fully funded the escrow account.
The status report was signed by IPI attorneys Chuck Choi, Allison Ito, and Charles McDonald; Chief Solicitor J. Robert Glass Jr. signed on behalf of the CNMI government; and attorneys Aram Ordubegian and Christopher K.S. Wong signed on behalf of the official committee of creditors.
In an earlier court filing, Choi had informed the court that the lease assignment had already been signed by both IPI and Team King.
“As a gesture of good faith, Team King has committed to paying the $207,000 annual ground rent for the lease period from May 1, 2025, to April 30, 2026,” he stated.
In the status report filed on July 17, the parties wrote that they “understand” Team King has made the 2025–2026 annual ground rent payment to DPL, and that both Team King and DPL are finalizing the form of the assignment and other documents.
“The Reporting Parties are informed that on July 11, 2025, the Secretary of DPL and the Acting Director of DPL’s Real Estate Division met with a Team King representative to discuss the form of the assignment. Subsequently, on July 15, 2025, DPL sent Team King its final version of the assignment, which Team King and the debtor (IPI) find acceptable,” the report stated.
According to the parties, progress is being made toward closing, with most delays attributed to the finalization of the assignment and other closing documents that require DPL’s approval.
The report noted that there are additional documents requested by the CNMI government from Team King, though these are not considered closing documents.
The Reporting Parties further noted that the revised assignment is expected to be executed by both the Debtor and Team King, and that DPL has provided Team King with a separate side letter, dated July 15, 2025, which is currently under review by Team King.
In addition, IPI is in the process of dismissing its pre-petition litigation pending before the District Court for the NMI against the CNMI government, its governor, and the Commonwealth Casino Commission, with prejudice.
The parties also reported that Team King has advised the court that once the lease assignment is fully executed, the escrow account can be fully funded within 10 days.
“Given the progress made, the Reporting Parties respectfully request that the court continue the status conference and the relief from stay motion filed by Saipan Stevedore Company, Inc. for approximately 14 days,” the report added.
The status report also noted that Team King’s principal, Hiroshi Kaneko, is scheduled to be on Saipan on July 21, 2025, “to sign and notarize documents.”
Lawsuits dismissed
Last year, IPI refiled two lawsuits against CCC Chairman Edward C. Deleon Guerrero, Vice Chairman Ralph S. Demapan, Commissioners Martin Mendiola, Mario Taitano, and Ramon S. Dela Cruz, CCC Executive Director Andrew Yeom, and the CNMI governor. The suits alleged breach of the casino license agreement.
IPI also sued the CNMI government for unconstitutional impairment of contract, violations of the contract clause of both the U.S. and CNMI constitutions, violations of the takings clause and due process clauses of the U.S. and CNMI constitutions, and breach of the casino license agreement.
The company alleged that it was denied due process when the CCC deliberated on the revocation of IPI’s exclusive casino license, citing the company’s failure to pay regulatory and license fees amounting to $79.63 million.
On July 16, 2025, IPI and the CNMI government filed two stipulations to dismiss the lawsuits with prejudice.