USA Fanter Corp. Ltd. has requested the federal court to appoint Clear Management Ltd. to administer, collect, or sell any casino gaming property in which defendant-judgment debtor Imperial Pacific International (CNMI) LLC has an interest, and to do any other acts required to satisfy the judgment of $2,089,345.28.
USA Fanter, represented by attorney Colin Thompson, filed a memorandum in support of motion for limited appointment of receiver in aid of execution.
IPI has failed to respond to USA Fanter’s demands for payment in satisfaction of the judgment, Thompson said.
“The appointment of a receiver should be granted where, as here, the judgment debtor’s conduct evidences a risk of insolvency,” he added.
“Further, the appointment of a receiver is necessary when the judgment debtor’s holdings are illiquid and complex because enforcement of the judgment by the sheriff would be impractical and unduly burdensome, and an ordinary sheriff’s sale is unlikely to result in the recovery of the full value of such assets. Finally, the U.S. Marshal’s office will not engage in the sale of the assets in this civil matter.”
USA Fanter also requested that it be awarded a further judgment for the attorney’s fees and costs incurred in its collection efforts.
Thompson said he is currently working with other creditors to reach agreement on a fair and orderly way to sell IPI’s various assets and distribute the proceeds.
If no agreement is reached, however, those creditors reserve the right to object to any proposed distribution of the sale proceeds for the assets that are the subject of this motion, he added.
According to Thompson, appointment of receiver is an appropriate remedy that is needed to satisfy USA Fanter’s interest in IPI’s assets, as well as to prevent the potential diminishment in value of those assets.
In a previous order, Chief Judge Ramona V. Manglona of the District Court for the NMI granted the request of USA Fanter to issue a writ of execution against IPI so that its vehicles and casino gaming machines can be seized and sold to satisfy the over $2 million judgment previously entered against the Saipan casino investor.
USA Fanter sued IPI for its failure to pay the full amount due to the plaintiff under their construction contract for labor and materials provided for the improvement of IPI’s real property.
The lawsuit stated that IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
The judge issued a final judgment in favor of USA Fanter.
