CLEAR Management Ltd., the court-appointed receiver, is seeking the District Court for the NMI’s approval of a plan to distribute $1.46 million in Imperial Pacific International’s gaming auction proceeds to judgment creditors.
The receiver, through attorney Michael White, filed a notice of the proposed distribution on Jan. 10.
IPI 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.
One of IPI’s creditors, Joshua Gray, was awarded by the federal court a total of $5.68 million in compensatory and punitive damages. His attorney, Aaron Halegua, filed a petition for an order to show cause concerning the distribution of the proceeds from the liquidation of IPI’s gaming equipment.
He also provided the court 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, including the CNMI government and the limited receiver, Clear Management.
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 government, in a fair, equitable and efficient manner.
Chief Judge Ramona V. Manglona has scheduled a hearing for today, Jan. 18, at 8:30 a.m. regarding the petition to show cause by consenting judgment creditors.
In its notice, the receiver stated that due to the intermittent payment of commissions and expenses, White’s trust account contains approximately $1,485,540 in funds related to the gaming equipment auction proceeds.
Clear Management anticipates that these future costs and expenses will need to be paid: the pending petition for $18,819.90 in expenses by Clear Management; White’s legal fees through Dec. 31, 2023, of $986; anticipated commissions to Clear Management for the seventh auction ($2,514); and anticipated commissions to Clear Management for when the chip bidder pays in full ($4,174).
There may also be additional amounts owed in legal fees, bank charges, and other miscellaneous expenses in the future, White said.
“Therefore, assuming that the seventh auction results are approved by the court, based on the $1,485,540 actually in the trust account today and the $22,319.90 in commissions and expenses already incurred ($18,819.90 in expenses, $986 in legal fees, and $2,514 in commissions), the limited receiver proposes that it is now appropriate to distribute $1,460,000 to the judgment creditors of IPI,” White added.
On Wednesday, Judge Manglona approved the report and account of the seventh auction as well as the payment of expenses.
White also attached a spreadsheet that contains the distribution plan of the $1,460,000.
According to White, the receiver is prepared to make distributions to the consenting judgment creditors and the CNMI government within 10 business days of the court approving the distribution plan.
“The limited receiver requests that the court order each of the consenting judgment creditors and the CNMI to email the limited receiver’s attorney within 48 hours of the court approving the distribution of the gaming proceeds stating (a) the individual or entity name to which the check should be made out (i.e. the client name, attorney trust account, etc.), and (b) whether the check will be picked up from Michael White’s office or the address to which it should be mailed,” White said.
The following are IPI’s judgment creditors and the amount they will receive according to the distribution plan. The figures in parentheses indicate the amount IPI owes them.
• Winzy Corporation, ($179,217.50), $28,754.95
• USA Fanter Corp. Ltd., ($226,127.05), $26,609.31
• Kan Pacific Saipan Ltd., ($697,801.30), $52,545.42
• Kan Pacific Saipan Ltd., ($209,808.22), $11,536.79
• Art Man Corporation, ($106,890), $20052.79
• USA Fanter Corp. Ltd., ($500,000), $27,493.67
• Joshua Gray, ($5,686,182.20), $326,843.18
• James Whang, dba South Pacific Lumber Company, ($795,236.88), $57,903.14
• Tang’s Corp., ($191,070.56), $24,681.65
CNMI court judgments:
• G4S, ($11,711.23), $11,711.23
• RC, ($69,722.25), $22,734.09
• Yu’s, LLC, ($38,512.00), $21,017.93
• Atkins Kroll, ($78,403.34), $23,211.44
• Art Man Environmental Corp., ($83,555.78), $23494.76
• Michael Dotts Law Office, ($396,625.62), $40,709.64
• Ecolab (Guam), ($17,629.84), $15,144.61
• GT Building Systems International, ($761,658.80), $56,056.78
• Hemine Ipwan Island, dba IPWAN Security Services, ($188,125.30), $24,519.70
• Fujitec Pacific Inc., ($2,679,255.45), $161,500.30
• Yantze Corp., ($248,000), $27,812.05
Tax lien:
• CNMI government, ($7,943,035.39), $455,666.58
