Imperial Pacific International Resolves Debts in Bid to Retain License
Imperial Pacific International (IPI) is struggling to maintain its casino monopoly in Saipan despite the fact that its Imperial Palace casino is non-functional. The company seems to have settled one of its massive debts recently, but it still owes millions.
Recently, a ruling was made in favor of a construction contractor, USA Fanter, who was owed over $2 million by IPI. According to Marianas Variety, the dispute involving $251,581 was resolved, seemingly resolving the legal dispute between the two parties.
The disagreement had lasted over three years with USA Fanter petitioning IPI again and again to settle its debts. When IPI continued to ignore these demands, the company finally took the gambler to court in 2019.
The court supported USA Fanter and asked IPI to clear the dues, but the company never did, instead going into bankruptcy. This has led to a series of their assets being auctioned off, leaving the once-gorgeous Imperial Palace a hollow shell of its former glory.
The transaction that took place last week saw $2.45 million placed in a trust by IPI while it appealed the case in the USA Fanter arena. In a settlement that occurred last month, both sides agreed to a deal that wiped off most of the debt. This left IPI owing just the $251,581 that was eventually paid.
There are more lawsuits waiting in the wings, however. Joshua Gray, a former executive, recently won a $5-million discrimination lawsuit. His debt is still unpaid.
Additionally, IPI owes the government of the Commonwealth of Northern Mariana Islands and its casino regulator, the Commonwealth Casino Commission (CCC), at least $36.6 million in unpaid license fees and other obligations. This amount may only increase if IPI can't get back on their feet financially.
The Imperial Palace remains closed, which is harmful to its ongoing state. Cars and possibly even building structures have already been affected by the deterioration at the property, making it harder for it to welcome guests.
IPI and the CCC recently had an arbitration session to resolve their differences. The main issue is whether IPI should retain its monopoly status. The US Court of Appeals for the Ninth Circuit had ruled that IPI isn't legally allowed to keep this status since it broke several laws and contracts.
The arbitration was only meant for advice-seeking and isn't legally binding. However, the court's verdict is. The CCC now has the legal authority to revoke IPI's exclusivity if it so chooses. But for now, the regulator appears in no hurry to make a decision. They recently announced a meeting to decide on the next steps, but it is unlikely to take place until later this year, leaving IPI to continue to fight the case in court.
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Source: www.casino.org
