‘IPI should pay creditors prior to lifting suspension of casino license’

A former contractor of Imperial Pacific International (CNMI) LLC has reminded the Commonwealth Casino Commission board of its previous order that lifting the suspension of IPI’s casino gaming license should be premised on IPI paying the judgment that have been awarded IPI’s creditors by federal and local courts.

Guocao Qian, president of USA Fanter Corp. Ltd., reminded the CCC board in a letter that its order dated June 25, 2020, requires IPI to settle its accounts payable first. Qian urged the commissioners to honor their statements in the order that any settlement with IPI that would allow for the lifting of its casino license suspension—including the sale and/or transfer of the license itself—would include payment of any outstanding obligation to any private entity that has been ordered by a court.

Separately, Tony Muña, who is a general consultant for USA Fanter, informed the board during its monthly meeting last Thursday that he wrote the letter and that Qian signed it.

The CCC order states that the commission “deems it necessary and proper to ensure …IPI is financially suitable and operating suitably by requiring [it] to settle any outstanding obligations owed to the U.S.A., the CNMI, and the political agencies of either, make any contribution required by an agreement with a public entity, and immediately pay any outstanding obligation to any private entity if so ordered by a court of competent jurisdiction.”

The CCC order, which was signed by board chair Edward C. DeLeon Guerrero, stated that IPI “shall settle in full any payable or contribution owed to a public entity” within 30 calendar days from the date of the order, and that IPI “shall immediately make any payment or contribution required by an agreement with a public entity; immediately pay any outstanding obligation to any private entity if so ordered by a court of competent jurisdiction; and immediately pay any debt owed to any private entity in which is more than 89 days old.”

In USA Fanter’s lawsuit against IPI, the federal court already awarded the company $500,000 plus post-judgment interest at 4.34% per annum, Qian said. Separately, in another lawsuit USA Fanter filed against IPI, the federal court awarded Qian’s company $226,127 plus post-judgment interest at 4.76% per annum. In total, USA Fanter was awarded $726,127 in judgments, Qian said.

He said their attorney has advised that sale of IPI’s remaining assets will be insufficient to satisfy judgment creditors.

Muña said it’s very important that whatever is going to be done last Saturday or thereafter, if IPI comes up with the payment of $62 million in outstanding casino license fees, it has to include judgment creditor balances.

“Without that inclusion, then the commission is in violation of its order of lifting a license for which the licensee has been deemed to be unsuitable,” he said, adding that they expect the commission to honor its order.

IPI has failed to pay $62 million or part of it last Saturday, which was the 30-day deadline given by the board to IPI.