Pacific Gardenia Hotel yesterday filed a bankruptcy case with the U.S. District Court as talks of its receivership is still awaiting a decision from the Superior Court.<\/p>\n
Pacific Gardenia president Ronald Sablan filed the petition under chapter 7 of U.S. Bankruptcy code and chapter 11 Small Business as defined in the U.S. Code.<\/p>\n
Sablan, in a document, declared an estimated asset of up to $10 million and an estimated debt of the same amount.<\/p>\n
This developed as the Superior Court is expected to rule on the motion to place the corporation under receivership this week.<\/p>\n
The Commonwealth Development Authority asked the court last July to appoint a trustee to manage and collect the profits of Pacific Gardenia Hotel until the case against the hotel’s owners is resolved.<\/p>\n
CDA said that as of last Jan. 20, Sy’s Corporation, which does business as Pacific Gardenia Hotel, and its officers Ronald, Maria Ana, and Jeannette Sablan owe CDA over $2.4 million, and are more than five years delinquent in their payment.<\/p>\n
CDA attorney F. Matthew Smith said that CDA’s rights and interests would be irreparably injured unless a receiver is appointed to take charge of the business affairs of Sy’s [Corporation] and to take possession of its property until a final decision or order from the court is issued following foreclosure.<\/p>\n
Court records showed that Jeannette, sister of Ronald, has already agreed to the proposed appointment of a trustee on June 17.<\/p>\n
In the motion filed earlier, Smith claimed that spouses Ronald and Maria Ann Sablan have been mismanaging the assets of Pacific Gardenia Hotel and Sunset Bar and Grill.<\/p>\n
CDA alleged that Sablans are maintaining separate sets of accounting books and had presented fictitious books to CDA in the past.<\/p>\n
Sy’s Corporation is reportedly operating without a CNMI business license due to unpaid taxes, and owes employees over $100,000 in back wages.<\/p>\n
Further, all checks payable to Sy’s Corporation were allegedly being diverted and deposited directly into the personal accounts of the Sablan couple. <\/p>\n
CDA said that if the court appoints a receiver, the trustee could collect, account for and place all proceeds from the hotel operations into a secure account that can be readily available for the court to distribute to entitled persons.<\/p>\n
The case was filed after the Gardenia owners failed to make required payments for several loans they obtained from the authority.<\/p>\n","protected":false},"excerpt":{"rendered":"
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