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IPI pays $164K on time

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Posted on Apr 07 2021

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Imperial Pacific International (CNMI) LLC’s first settlement payment to the U.S. Department of Labor amounting to $164,270.08 was timely paid last April 1, according to IPI lawyer Michael Dotts.

In the 12th status report filed in the U.S. District Court for the NMI, Dotts reported that IPI paid its monthly bill to the U.S. Department of Labor last April 1 and that IPI’s next payday for its payroll is April 9. Dotts said IPI’s employee housing still has housing and power, food services continue without interruption for all the H-2B workers, and there is no repatriation to report. Also, construction work at IPI’s resort in Garapan remains suspended.

Dotts said IPI continues to work with DOL’s field office to match up check numbers to names and assure the checks actually cleared. He added that the process is complicated “because the checks were written on the account of the payroll service provider and not on IPI’s account.”

Last March 29, U.S. District Court Chief Judge Ramona V. Manglona approved the amended consent judgment between IPI and USDOL that allows IPI to pay off in installments the amount it owes USDOL in a previous consent judgment. That effectively suspended Mangloña’s previously ordered receivership for the casino developer.

USDOL reported to the court that IPI and its parent company have “come current on the payment of their payroll and are in the process of determining the full extent of their liability to their employees from June 1 to Feb. 28, 2021.”

According to Saipan Tribune archives, Manglona ordered IPI to pay the remaining balance of the April 2019 consent judgment starting April 1, 2021 until Dec. 1, 2021. The total amount that IPI owes is $1,478,430.72 which includes the first amended consent judgment pf $1,430,574.72 plus $47,856 in unpaid wages.

If IPI fails to make payment after 10 days of missing the payment due date, then the USDOL secretary can declare a default of the amended consent judgment by filing a notice of default with the court and provide a copy of the notice to IPI.

If IPI still fails to make payment five days after 10 days of missing payment, then the receiver—in this case Guam lawyer Joyce Tang—will be authorized to sell IPI’s assets, including but not limited to the Flame Tree Terrace Parcels property, to pay the total judgment amount and the receiver’s costs and fees, said Manglona.

Justine Nauta
Justine Nauta is Saipan Tribune's community and health reporter and has covered a wide range of news beats, including the Northern Marianas College and Commonwealth Health Care Corp. She's currently pursuing a bachelor’s degree in Rehabilitation and Human Services at NMC.

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