Imperial Pacific International files for bankruptcy

Lea Hogg 1 month ago
Imperial Pacific International files for bankruptcy

Imperial Pacific International (CNMI) LLC, a prominent casino operator based in Saipan, has filed for Chapter 11 bankruptcy with the U.S. District Court. The company claims it owes creditors more than US$150 million, a significant amount that has led to this drastic measure. The bankruptcy filing comes just days before a long-awaited hearing scheduled to determine the fate of IPI’s casino license.

The timing of the bankruptcy filing raises questions, given IPI’s well-known financial issues. It is unclear why the company chose to file for bankruptcy at this particular juncture. However, the move follows shortly after its parent company, Hong Kong-listed Imperial Pacific International (IPI), was ordered to be wound up by a Hong Kong court, and a provisional receiver was appointed.

Casino licence suspension and settlement plan

IPI’s casino licence was suspended in April 2021 due to the company’s failure to pay license and regulatory fees. In an attempt to rectify the situation, IPI put forward a settlement plan in which it promised to repay US$24 million in late licence and regulatory fees before the end of the year. This plan was presented during an earlier hearing, which was subsequently put on hold.

The upcoming hearing, scheduled for today, is set to finally determine whether or not to revoke IPI’s casino licence. The Commonwealth Casino Commission, the body responsible for this decision, has been closely monitoring the situation

The company has seen many of its assets sold off by receivers to pay down debts. The building that houses its hotel and casino remains incomplete, with construction work having halted during the COVID-19 pandemic. This presents a significant challenge for the company, as it attempts to navigate its way through these financial difficulties.

Despite these challenges, IPI has stated that it will “vigorously defend” its exclusive gaming rights on Saipan. This suggests a determination to fight for its survival and potentially turn around its fortunes.

In conclusion, the future of Imperial Pacific International (CNMI) LLC hangs in the balance as it faces a critical hearing that could determine the fate of its casino license. The company’s recent bankruptcy filing adds another layer of complexity to an already challenging situation. As the company navigates through these difficulties, stakeholders and observers alike will be keenly watching the outcomes of these developments.

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