CCC: There’s no reason to stay revocation proceedings

The Commonwealth Casino Commission, after learning of Imperial Pacific International (CNMI) LLC’s agreement with creditors to liquidate all assets, says if this is the case, there is no reason to stay revocation proceedings.

Last week, CCC held a board meeting to discuss updates on IPI’s Chapter 11 bankruptcy which has now shifted to a liquidation rather than reorganization.

During the board meeting, CCC board chair Edward Deleon Gurrero stated that if IPI really will be selling off its assets, including the resort casino in Garapan, without a license, then there is no reason to stay revocation proceedings.

“IPI and a list of creditors have reached an agreement…to sell IPI’s assets. I want to see that agreement. It appears that IPI is selling the leasehold of its property, both prepaid lease and DPL lease, and the building, all the assets inside, but not the license itself. Now, if they’re no longer interested in selling the license, then there’s no reason at all to hold back the stay on revocation proceedings,” he said.

Deleon Guerrero said CCC still wants to pursue revocation proceedings and with a new CCC board nominee awaiting confirmation, CCC will have quorum even if he recuses himself.

“CCC wants to pursue this and lift the stay in order for CCC to continue with its deliberation. Since we now have a new appointee, once he is confirmed, quorum will no longer be an issue to continue revocation,” he said.

Currently, IPI owes CCC over $17 million in fees and obligations under its license agreement and the entire CNMI over $95 million.

Last week, IPI filed a motion asking the court to approve bid procedures for sale of substantially all of IPI’s assets.

According to the motion, IPI and a committee of IPI creditors have finalized the terms of a proposed sale of essentially all of IPI’s assets to a “stalking horse purchaser.”

A “stalking horse purchaser” essentially agrees to buy all of a debtor’s assets subject to higher and better bids and subject to approval by a bankruptcy court.

The motion named Loi Lim Sit as the proposed “stalking horse purchaser,” the same individual who agreed to loan IPI $1.4 million in debtor-in-possession financing.

The motion further states that the “stalking horse purchaser” has agreed upon a purchase price of $10 million for all of IPI’s assets.

The assets to be acquired includes all tangible property, accounts, machinery, equipment, inventories, tenant improvements, goodwill, software and computer programs, hardware, intellectual property, company names, product names, trade names, prepaid expenses, and more.

District Court for the NMI Chief Judge Ramon Manglona has scheduled a status conference on the matter for Nov. 20, 2024.