{"id":412736,"date":"2024-08-22T14:00:00","date_gmt":"2024-08-22T14:00:00","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=412736"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-29T14:00:00","slug":"Court-denies-motion-to-convert-IPI-s-bankruptcy-to-Chapter-7","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/Court-denies-motion-to-convert-IPI-s-bankruptcy-to-Chapter-7\/","title":{"rendered":"Court denies motion to convert IPI\u2019s bankruptcy to Chapter 7"},"content":{"rendered":"

The NMI Bankruptcy Court has denied the CNMI government\u2019s motion to convert Imperial Pacific International (CNMI) LLC\u2019s Chapter 11 Bankruptcy to a Chapter 7 Bankruptcy which essentially means the liquidation of all IPI\u2019s property and assets to pay off debts.<\/p>\n

During a status conference last week on IPI\u2019s bankruptcy proceedings, Chief Judge Ramona V. Manglona denied the CNMI government\u2019s previous motion to convert IPI\u2019s Chapter 11 Bankruptcy to a Chapter 7 Bankruptcy.<\/p>\n

While Chapter 11 Bankruptcy allows for a business\/individual to reorganize and restructure, Chapter 7 Bankruptcy essential means the complete liquidation of a business\u2019 property and assets which may result in the company\u2019s dissolution.<\/p>\n

The CNMI government, through Office of the Attorney General chief solicitor Robert Glass Jr., asked the court to withhold its ruling to which the court declined.<\/p>\n

In addition, the bankruptcy court judge denied the U.S. Trustees\u2019 alternative request (dismissal) finding that it is not in the best interest of IPI creditors or the estate.<\/p>\n

\u201cDismissal is not warranted at this time. Case is to proceed as a Chapter 11 liquidation,\u201d said the judge.<\/p>\n

As for the U.S Trustees\u2019 request for the court to appoint a Chapter 11 trustee, the court did not decide stating that the request would require a separate notice and hearing.<\/p>\n

In related news, IPI has filed a motion asking the court to approve bid procedures for sale of substantially all of IPI\u2019s assets.<\/p>\n

According to the motion, IPI and a committee of IPI creditors have finalized the terms of a proposed sale of essentially all of IPI\u2019s assets to a \u201cstalking horse purchaser.\u201d<\/p>\n

A \u201cstalking horse purchaser\u201d essentially agrees to buy all of a debtor\u2019s assets subject to higher and better bids and subject to approval by a bankruptcy court.<\/p>\n

The motion named Loi Lim Sit as the proposed \u201cstalking horse purchaser,\u201d the same individual who agreed to loan IPI $1.4 million in debtor-in-possession financing.<\/p>\n

The motion further states that the \u201cstalking horse purchaser\u201d has agreed upon a purchase price of $10 million for all of IPI\u2019s assets.<\/p>\n

The assets to be acquired includes all tangible property, accounts, machinery, equipment, inventories, tenant improvements, goodwill, software and computer programs, hardware, intellectual property, company names, product names, trade names, prepaid expenses, and more.<\/p>\n

Manglona has scheduled a status conference on the matter for Nov. 20, 2024.<\/p>\n

<\/p>\n

The Imperial Pacific Resort Hotel in Garapan.<\/p>\n

-KIMBERLY B. ESMORES
<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

The NMI Bankruptcy Court has denied the CNMI government\u2019s motion to convert Imperial Pacific International…<\/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-412736","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\/412736","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=412736"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/412736\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=412736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=412736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=412736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}