Troubled Saipan casino operator Imperial Pacific International (CNMI) LLC faces a new challenge as creditor Century Estate Investment Ltd looks to intervene in the receivership initiated by a former employee. Century Estate, which lent IPI about $9 million last year, claims a secured interest in IPI’s assets due to the outstanding debt.
Background:
Imperial Pacific International (CNMI) LLC, a struggling Saipan casino operator, is facing a receivership initiated by one of its former employees, Joshua Gray, who won a federal court judgment of nearly $5.7 million against IPI for racial discrimination, wrongful termination, and retaliation claims. This stems from complaints related to IPI’s employment practices.
Intervention Motion by Century Estate Investment:
Century Estate Investment Ltd, a creditor that provided a loan of approximately $9 million to IPI last year, has filed a motion to intervene in the ongoing receivership. They argue that they have a secured interest in IPI assets due to the debt owed to them.
Basis of Intervention:
Century Estate Investment states that they provided substantial funds to IPI on the basis of a secured loan, aiding IPI in maintaining construction progress, managing debts, and improving cash flow. As a part of this loan, they acquired a first-priority security interest/mortgage in IPI’s collateral assets.
Default on Loan and Seeking Protection:
IPI has defaulted on the loan, and Century Estate is seeking intervention to protect its interest in the collateralized assets. They intend to mitigate substantial losses resulting from IPI’s default by liquidating the assets.
IPI’s Precarious Financial Position:
Besides the debt owed to Century Estate, IPI also owes the CNMI government a significant sum of $76.5 million in outstanding fees, further worsening its financial situation and raising concerns about its operational sustainability.
The intervention by Century Estate Investment adds a layer of complexity to IPI’s challenges, reflecting the broader financial struggles the casino operator is currently facing. With mounting debts and legal disputes, IPI’s path to recovery remains uncertain.