Creditors Challenge Sale Price of IPI Casino Property

The ongoing drama surrounding the sale of Imperial Pacific International’s (IPI) casino property continues to heat up, as creditors challenge the proposed $10 million sale price. The unsecured creditors of IPI have filed an opposition to the company’s motion to approve this bid, arguing that it’s significantly undervalued and disproportionately benefits the suggested buyer, Loi Lam Sit.

IPI’s financial troubles have not gone unnoticed by the Commonwealth of the Northern Mariana Islands (CNMI) government, which has also shown resistance to the asset sale. With creditor interests at stake, the CNMI government voiced its opposition earlier this month, prompting IPI to take the matter to the district court, aiming to finalize the bankruptcy agreement and secure the sale process.

The sale’s complications are partly rooted in Loi Lam Sit’s previous proposal of a $7 million loan to support bankruptcy proceedings, of which only about $1.5 million was allocated to liquidation. Sit is described as a “friend of the debtor,” raising suspicion among the creditors’ committee, who question his connections to IPI and its principals.

The committee, represented by their legal team, asserts that the bid procedures are skewed in favor of Sit, highlighting that he hasn’t sufficiently demonstrated his ability to fulfill leasehold obligations or run a hotel. They argue that the only suitable resolution is through a strategic marketing plan that would revitalize the casino and hotel operations, ensuring maximum returns for the creditors while boosting tax revenue, tourism, and job opportunities in Saipan.

A critical element in this situation is the casino license itself, which the Commonwealth Casino Committee (CCC) has declared wouldn’t be restored to IPI or related parties. However, the door remains open for disinterested parties to obtain a casino license. The opposition argues that by excluding the casino license from the sale, potential buyers from the gaming and gambling sector are deterred, narrowing the field to the benefit of Sit, who lacks the qualifications to operate a casino.

As the court date approaches on September 19th, those opposing the sale and its current terms are geared up to present their arguments. The gambling industry and stakeholders watch closely as the outcomes could set a precedent for future casino property disputes in the region. The battle for IPI’s assets is more than just a legal tug-of-war; it’s a pivotal moment for Saipan’s economic landscape.