{"id":408809,"date":"2024-05-31T14:00:00","date_gmt":"2024-05-31T14:00:00","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=408809"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-29T14:00:00","slug":"IPI-granted-400K-loan-for-purpose-of-restructuring","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/IPI-granted-400K-loan-for-purpose-of-restructuring\/","title":{"rendered":"IPI granted $400K loan for purpose of restructuring"},"content":{"rendered":"

After many losses, Imperial Pacific International (CNMI) LLC finally caught a break with the NMI bankruptcy court approving the casino investor\u2019s request for debtor-in-possession, DIP, financing allowing an interim withdrawal of $400,000 that would go toward restructuring.<\/p>\n

Yesterday, the Commonwealth Casino Commission held a board meeting to discuss updates on IPI\u2019s Chapter 11 Bankruptcy petition.<\/p>\n

IPI director Howyo Chi appeared before the commission and informed them that IPI gained a small win yesterday during its bankruptcy hearing before U.S. District Court for the NMI Chief Judge Ramona Manglona after she approved IPI\u2019s DIP financing request and approved an interim withdrawal of $400,000 from a $7-million loan IPI recently secured.<\/p>\n

\u201cThe court approved the initial DIP financing for the interim $400,000 withdraw. So, we will be able to obtain that financing and have the lender send us the $400,000,\u201d said Chi.<\/p>\n

Essentially, IPI managed to secure a $7-million loan from a Hong Kong-based financing institution. However, DIP financing through the court is needed to ensure that should IPI fail in its attempt to restructure and must liquidate all assets to pay off creditors, the lender and its loan is given priority.<\/p>\n

\u201cWe have secured the funding, but because no creditor is going to lend IPI money on an unsecured basis knowing IPI has a $200-million debt, they want to get ahead of that $200-million debt,\u201d Chi explained.<\/p>\n

Of the $7-million loan, the court approved DIP financing for $400,000.<\/p>\n

Of the $400,000, Chi said half will be paid to the Department of Public Lands for its lease of the land on which the resort and casino was built on.<\/p>\n

The other half will go toward salaries and administrative expenses.<\/p>\n

\u201cWe are glad that the court has approved the interim $400,000. The remaining $6.6 million of the $7-million financing we requested is going to be heard on June 21,\u201d Chi said.<\/p>\n

The June 21 hearing is essentially for the court to either approve or deny IPI\u2019s loan of the remaining $6 million.<\/p>\n

Chi further told the commission that IPI proposes that the remaining $6 million (if approved for DIP financing) will be paid to CCC.<\/p>\n

\u201cSome $3 million will go to the 2020 payments, and another $3 million to 2024 payments,\u201d he said.<\/p>\n

Chi told the commission with the court\u2019s approval, the court has basically given IPI time to reorganize,<\/p>\n

\u201cThis gives us time to come up with a plan to reorganize. IPI has until Aug. 17 to present the court with a plan for reorganization,\u201d said Chi.<\/p>\n

Chi noted that IPI wants to possibly negotiate the reinstatement of its casino license should the court grant DIP financing for the remaining $6 million.<\/p>\n

CCC board chair Edward Deleon Guerrero raised concerns about the creditor being an insider affiliated with IPI but Chi said the lender is not.<\/p>\n

\u201cThe CNMI government and other IPI creditors are also challenging [IPI\u2019s lender] and they want to know more about the lender which is why we will be providing more information,\u201d said Chi.<\/p>\n

Deleon Guerrero also posed the question \u201cwhy would someone come forward and give IPI $7 million knowing its background?\u201d<\/p>\n

To this, Chi replied that the lender has priority over the unsecured creditors.<\/p>\n

\u201cOn a repayment basis (I don\u2019t know if there\u2019s a 10% interest already), if IPI fails at restructuring and needs to sell off all its assets, then they still get paid before all IPI creditors,\u201d he said.<\/p>\n

The last known value of IPI\u2019s assets is around $20 million.<\/p>\n

Chi said the IPI casino is estimated at $5 million-$10 million without a license.<\/p>\n

\u201cWe don\u2019t have an exact appraisal. The value may vary whether the casino is licensed. If IPI is able to liquidate the casino with the license attached, it\u2019s going to be worth a lot more. If it gets liquidated as a building alone, it\u2019s only going to be worth less. No one is going to buy a half-finished resort that needs around $150 million more to be completed,\u201d he said.<\/p>\n

<\/p>\n

Imperial Pacific International (CNMI) LLC director Howyo Chi appeared before the Commonwealth Casino Commission yesterday to give updates on current bankruptcy proceedings.<\/p>\n

-KIMBERLY B. ESMORES
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After many losses, Imperial Pacific International (CNMI) LLC finally caught a break with the NMI…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-408809","post","type-post","status-publish","format-standard","hentry","category-local-news"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/408809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=408809"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/408809\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=408809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=408809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=408809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}