ON PAYMENT FROM IPI ASSETS
The U.S. District Court for the NMI has approved the settlement agreement between Pacific Rim Land and Development LLC and the Department of Finance’s Division of Revenue and Taxation regarding payment from Imperial Pacific International (CNMI) LLC’s assets.
District Court for the NMI Chief Judge Ramona V. Manglona issued the order granting the settlement between Finance-DRT and Pacific Rim to share IPI’s net proceeds from their seized assets and monies.
Originally, Finance-DRT, through the Office of the Attorney General, wanted their notice of tax lien against IPI in the amount of over $9 million to take precedence over the claims of Pacific Rim. Now, both parties have agreed to share IPI’s assets or proceeds from the sale of the assets.
In the stipulation, in regards to the currency in IPI’s casino cage, Manglona said Pacific Rim shall retain 25% of the net proceeds after permitted deductions and pay Finance-DRT 75% of the net proceeds after permitted deductions.
The stipulation also mentioned that the court granted a writ of execution in favor of Pacific Rim against certain funds held by Security Title as escrow agent.
In regards to the escrow funds, Pacific Rim shall retain 80% of the net proceeds after permitted deductions and pay Finance-DRT 20% of the net proceeds after permitted deductions.
As for other IPI assets, the judge said that the distribution of net proceeds from other IPI assets shall be in a proportion to bring the parties to equal shares of total net proceeds.
However, unless the escrow funds are not released to Pacific Rim prior to the sale of other IPI assets, Finance-DRT shall receive one-third of the net proceeds from the sale of any other IPI assets until the parties have received equal distributions, at which point the parties will split further net proceeds equally.
Pacific Rim sued IPI for breach of contract for refusing to pay for services in the amount of $5.65 million. On April 27, 2020, the District Court for the NMI entered a judgment in favor of Pacific Rim.
On May 2, 2020, the court entered an amended civil judgment in favor of Pacific Rim in the amount of $6.8 million, including the principal amount and attorney’s fees and costs.
Pacific Rim attorney Colin Thompson said the judgment remains unsatisfied in the amount of $5,525,463.98 plus interest, costs, and fees that have yet to be addressed.