IPI creditor intervenes in Gray’s request for receivership

Century Estate Investment Ltd., an Imperial Pacific International (CNMI) LLC creditor that lent IPI over $5 million back in 2022, has filed a motion to intervene in the receivership sought by Joshua Gray to sell IPI’s personal property.

Century Estate, through attorney Matthew T. Gregory, has filed a motion to intervene in Gray’s request for receivership before the U.S. District Court for the NMI claiming that the loan it granted IPI of over $9 million back in 2022 should take precedence over Gray’s judgment.

“Century Estate rescued [IPI] from its debts and cash flow problems. The substantial funds were provided by Century Estate on the basis of a loan secured under a mortgage of IPI’s collateralized assets. Thus, Century Estate Investment Limited has a secured interest in [IPI] assets that is prior and superior to any other party. [IPI] has not made repayment to Century Estate and is in full default of the loan. Century Estate now seeks to intervene in this action in order to have the right to move forward and order liquidation of assets toward mitigation of losses from its outlay under the loan,” said Gregory.

According to Gregory, on Feb. 1, 2022, Century Estate provided a loan to IPI for the purpose of maintaining ongoing construction, surviving its debts, and reviving low cash flow.

“In conjunction with making the loan, Century Estate took a first priority security interest/mortgage in [IPI’s] collateral assets.The total amount due and owing on Century Estate’s loan to [IPI] is currently $9 million plus 8% interest per annum. [IPI] has defaulted on the loan, and the total amount remains due to Century Estate Investment Limited. Century Estate Investment Limited seeks to intervene in this matter to protect its interest in the collateralized assets and to liquidate the assets in order mitigate the substantial losses from [IPI’s] default,” Gregory said.

According to Saipan Tribune archives, over a week ago, IPI former employee Joshua Gray, through attorneys Aaron Halegua and Bruce Berline, filed a petition for an order to show cause to appoint a limited receiver to sell IPI’s personal property.

Specifically, Gray is petitioning the U.S. District Court for the NMI to issue an order compelling IPI to justify why Clear Management Ltd. should not be appointed as limited receiver to sell IPI’s personal property which were seized through a writ of execution previously granted in his Gray’s favor.

On May 31, 2023, the District Court entered judgment in favor of Gray against IPI in the amount of $5,686,182.20 plus pre-judgment interest, post-judgment interest, and attorneys’ fees and costs.

On July 3, 2023, since IPI did not pay the judgment or post a bond, Gray applied for a writ of execution against certain assets belonging to IPI.

IPI did not file a timely opposition to that application.

On Aug. 16, 2023, the court issued a writ of execution in favor of Gray and the clerk issued a notice about the writ and informing IPI of its rights.

On Aug. 21, 2023, the U.S. Marshals Service filed a notice affirming that the writ was executed.