IPI posts $2.45M bond to stay receivership

Imperial Pacific International (CNMI) LLC has posted a $2.45 million “supersedeas” bond to stay the limited receivership granted in favor of U.S.A. Fanter Corp. in its breach-of-contract lawsuit against the casino investor.

IPI, through counsel Kevin T. Abikoff, filed notice with the U.S. District Court for the NMI yesterday, stating that in satisfaction of the terms of its stipulation with USA Fanter, it has secured a “supersedeas” bond in the agreed-upon amount of $2,450,000, secured by Suretech Insurance Company as surety on behalf of IPI as principal.

Abikoff stated that pursuant to parties’ stipulation regarding the motion to stay judgment pending appeal, IPI now requests approval of its supersedeas bond in the amount of $2.45 million, which will stay execution on the judgment pending appeal.

“IPI has submitted a supersedeas bond in the amount that the parties’ stipulated would constitute sufficient security, and secured that bond by the date agreed between the parties. Additionally, pursuant to Federal Rule 62(c), IPI requests that the court also extend its stay of the limited receivership,” he said.

The lawyer argued that as USA Fanter’s judgment is now sufficiently secured pending appeal, USA Fanter will not be substantially injured by a stay of the limited receivership.

“IPI submits that the balance of hardships favors a stay of the receivership to avoid the sale of IPI’s property at depressed prices—which would harm the interests of IPI as well as of its other creditors—and to allow IPI’s arguments to be fully heard on appeal, without incurring the extreme prejudice of having its assets sold by a receiver,” Abikoff said.

According to court documents, on Feb. 12, 2021, the court entered a judgment in favor of USA Fanter against IPI for a mechanic’s lien in the amount of $2,089,345.28.

On May 26, the court entered an amended judgment in favor of USA Fanter, against IPI for a mechanic’s lien and a money judgment in the amount of $2,089,345.28, plus pre- and post-judgement interest and costs.

However, on May 12, IPI filed a Notice of Appeal on these judgments.

Last Oct. 26, the court issued a memorandum decision granting USA Fanter’s motion to appoint a limited receiver to sell IPI’s “casino gaming property” in order to satisfy its judgment against IPI.

On Nov. 29, IPI filed a motion to stay judgment pending appeal. That same day, the court granted a stay until Dec. 15, and ordered IPI and USA Fanter to attempt to negotiate a stipulation regarding sufficient security.

On Dec. 8, IPI and USA Fanter jointly stipulated that should IPI secure a supersedeas bond in the amount of $2.45 million on or before Dec. 15, USA Fanter would agree that this constitutes sufficient security and would not oppose a stay of enforcement in this action.