The parties who have assumed the role of U.S.A Fanter Corp. Ltd., in the receivership currently active against Imperial Pacific International (CNMI) LLC have agreed to request a stay on the limited receivership which is currently on track to auction off more of IPI’s assets this Friday.
According to a stipulated, or agreed upon, motion filed by IPI and its creditors, the parties are asking the U.S. District Court for the NMI to once again stay the ongoing receivership.
“Defendant IPI, the plaintiffs in Wang et al. v. Gold Mantis Construction Decoration (CNMI), LLC, the plaintiffs Genc et al. v. Imperial Pacific International (CNMI), LLC, and N15 Architecture referred to together as the ‘judgment creditors,’ jointly stipulate and move this Court to enter an order staying the Limited Receivership established by this court,” the motion stated.
The motion has been brought to the court as IPI claims to have reached settlements and has made full payment to each judgment creditors.
In addition, IPI intends to move to dissolve the limited receivership altogether.
“IPI recognizes the need to resolve certain issues, including obtaining court approval (where necessary) of its settlement agreements and of satisfaction of judgments, making payment to the limited receiver of its reasonable costs incurred, and obtaining a court order regarding the disposition of any funds collected by the Limited Receiver. IPI, joined by the judgment creditors, thus brings this motion to stay the limited receivership in order to avoid incurring additional unnecessary costs while these matters are addressed,” the motion stated
The motion noted that on Oct. 4, IPI and the Wang plaintiffs executed a settlement agreement that fully and finally resolved the over $5 million claim against IPI.
“IPI made full payment of the amount due pursuant to this settlement agreement to the Wang plaintiffs and to a designated escrow agent on Oct. 4, 2022,” the stipulated motion states.
Meanwhile, on Oct. 3, IPI and the Genc plaintiffs reached an agreement for a compromise settlement of the Fair Labor Standards Act judgment in the amount of $477,935.91. IPI made the full payment pursuant to this agreement yesterday, Oct. 5.
Lastly, on Oct. 3, IPI and N15 reached an agreement to fully and finally resolve N15’s judgment of $149,195.50 against IPI.
“IPI made full payment of the amount due pursuant to this agreement on Oct. 4, 2022. N15 filed an acknowledgement of satisfaction of judgment and motion for withdrawal from Limited Receivership on Oct. 5,” the motion states.
IPI argues now that it has fully resolved its outstanding judgments with the Wang plaintiffs, the Genc plaintiffs, and N15 plaintiffs, there are currently no unpaid judgments that need to be satisfied through a Limited Receiver.
“Accordingly, the court should stay the limited receivership prior to the planned Oct. 7, 2022, auction so as to avoid the unnecessary sale, and the related expense associated with such sale, of IPI gaming equipment,” IPI stated.
“Currently, the limited receiver has set Oct. 7, 2022, as the closing date for an ongoing auction for certain IPI gaming equipment. While, pursuant to the terms of the limited receivership established by the court, any sale of gaming equipment would need to be confirmed by the court before the sale would be final, IPI argues that the court should stay the limited receivership in advance of the Oct. 7, 2022, auction because doing so would benefit all interested parties in the limited receivership. The judgment creditors have no objection to this” IPI further argued.
According to court documents, the court appointed Clear Management Limited as a receiver, and empowered Clear to sell IPI’s casino gaming equipment pursuant to the court’s Oct. 26, 2021 memorandum decision, based on an outstanding judgment owed by IPI to plaintiff USA Fanter Corp.
After IPI posted a supersedeas bond to secure the judgment owed to USA Fanter on Jan. 4, 2022, the court issued an order staying execution of USA Fanter’s judgment pending IPI’s appeal to the U.S. Court of Appeals for the Ninth Circuit.
On March 16, pursuant to a stipulation between the Wang plaintiffs and IPI and based on the Wang plaintiffs’ judgment against IPI in the amount of $5,430,595.58 and pending fee petition, the court ordered that the Wang plaintiffs should assume all rights as to the limited receivership, and stayed the limited receivership.
On June 14, the Genc plaintiffs moved to participate in the limited receivership, on the basis of their judgment on their FLSA claim against IPI in the amount of $477,935.91 plus post-judgment interest and attorneys’ fees and costs.
Finally, last Sept. 13, N15 moved to participate in the Limited Receivership on the basis of its $149,195.50 judgment against IPI.