Imperial Pacific International Struggles to Adhere to Additional Court Directives
The management at Imperial Pacific International (IPI) seems unfazed by the need to adhere to court orders. The parent company behind the failed Imperial Palace casino in Saipan has several unfulfilled judgments against it, yet two claims suggest it's financially capable of satisfying them.
IPI's track record of ineptitude is well-documented. The attempt to turn Imperial Palace into a premiere gambling spot encountered numerous regulatory and criminal investigations shortly after they initiated expansion efforts several years ago. Fast forward to today, and IPI owes money to the Commonwealth of Northern Mariana Islands (CNMI) and even their legal representatives. They've also disregarded a DOL court order.
IPI's Obligation to DOL
IPI found itself in hot water in April 2019 for several reasons, primarily not paying their workers adequately. When they did pay, many employees did not receive minimum wage or proper compensation for their roles.
The court eventually found IPI responsible and ordered them to pay $2.19 million - an amount constituting $1.08 million in back wages, $1 million in damages, and $174,893 in fines. However, IPI was unable to meet its deadlines and was later held in contempt.
This led to a revised arrangement where IPI was expected to catch up starting January 2022. Once again, IPI backtracked on its promises, missing $498K surmised to be paid in August and September.
As a result, the DOL must return to court to file a default claim lawsuit. In his declaration, Charles Song, representing the DOL, urges IPI to comply with the original ruling laid out in 2019.
IPI has a fifteenth-day reprieve to settle their debt. Should they fail to meet their obligations, the DOL could financially exploit collateral supplied by IPI for the judgment. These assets include the Hopwood Middle School, currently managed by its subsidiary, Green Estate Holdings.
Song disclosed that the debt amounts to $1.53 million, but additional fees and expenses raise the total to an even higher amount. He didn't elaborate on the DOL's intended use of the school, serving around 900 students.
Kan Pacific Continues to Face Roadblocks
IPI still owes Kan Pacific Saipan - the company they elbowed out to reign supreme in Saipan's gaming scene. The Saipan Tribune reported that Kan Pacific brought forth a breach of contract claim against IPI, despite the previous court-ordered payment.
IPI struck a deal with Kan Pacific, resulting in the latter's exit from Saipan's gaming industry in exchange for money. The agreement mandated a total consideration of $5 million, received in equal payments over 20 years.
Kan Pacific received the payments for the first three years but was abandoned when IPI failed to keep up with subsequent annual payments. In December 2020, a CNMI court instructed IPI to provide Kan Pacific with $697,801.30, inclusive of interest. However, IPI missed the upcoming instalment scheduled for June this year.
Kan Pacific attempted to capitalize on the ongoing racketeering charges levelled against IPI, intending to gain reimbursement from the dispersed assets. Nonetheless, IPI denied the impending contribution, potentially leaving them in a difficult situation should they be left with minimal assets to distribute among so many creditors.
