$1.4M from IPI auctions ready to be disbursed to creditors

The company that’s auctioning off some properties of Imperial Pacific International (CNMI) LLC has amassed over $1.4 million from the auctions it has already held and is now ready to disburse the money to some of IPI’s creditors.

Clear Management Ltd., through attorney Michael White, informed the U.S. District Court for the NMI last week that it has earned over $1.4 million from the seven auctions held to sell off IPI’s gaming equipment and personal property.

In the notice of proposed distribution of IPI gaming equipment auction proceeds it filed with the district court, Clear Management stated that it accepted bids totaling $1,933,098 and has officially collected $1,879,703.00, including the amounts already collected from the latest auction.

It said Clear Management is now prepared to make distributions to consenting judgment creditors and the CNMI within 10 days of the court approving its notice.

The court is set to hear the matter on Jan. 18.

The consenting judgment creditors are; Joshua Gray, Winzy Corporation, USA Fanter Corp. Ltd., Kan Pacific, Art Man Environmental Corp., James Whang dba South Pacific Lumber Company, Tang’s Corp., G4S, RC, Yu’s LLC, Atkins Kroll, Dotts, Ecolab Guam, GT Buildings Systems International, Hermine Ipwan Island dba IPWAN Security Services, Fujitec Pacific Inc., Yantze Corp., and the CNMI government.

Although Clear Management has collected over $1.8 million in all from IPI auctions, Clear Management has about $1,460,000 to disburse to IPI’s creditors due to commissions and expenses.

“Assuming that the seventh auction results are approved by the court, based on the $1,485,540 actually in the trust account today and the $22,319.90 in commissions and expenses already incurred, the limited receiver proposes that it is now appropriate to distribute $1,460,000 to the judgment creditors of IPI,” said the notice.

Clear Management requests that the court order each of the creditors and the CNMI government to email White within 48 hours of the court approving the distribution of the gaming proceeds, stating the individual or entity name to which the check should be made out, and whether the check will be picked up from Michael White’s office or the address to which it should be mailed.

On Jan. 4, 2024, Clear Management submitted a request for the court to approve the sales from the seventh auction totaling $25,142 as well as to approve $18,819.90 in expenses incurred by Clear from Sept. 9, 2023, to Dec. 1, 2023.

Assuming the seventh auction results are approved, Clear will have accepted bids totaling $1,933,098.00 and collected $1,879,703.00, including the amounts already collected from the seventh auction.

Clear Management states in its notice that approximately $11,645 from the seventh auction (if approved) and $41,750 from another successful bidder (who wants to count the chips he purchased before remitting full payment) remain to be paid.

Due to the intermittent payment of commissions and expenses, as of the date of the notice, White’s trust account contains approximately $1,485,540 in funds related to the gaming equipment auction proceeds.

Clear Management anticipates these future costs and expenses will need to be paid: the pending petition for $18,819.90 in expenses by Clear Management, Michael White’s legal fees through Dec. 31, 2023 of $986, anticipated commissions to Clear Management for the seventh auction totaling $2,514.00, and anticipated commissions to Clear Management for when the chip bidder pays in full the $4,174.