Saipan Casino Operator IPI Files for Chapter 11 Bankruptcy

The troubled Saipan casino operator, Imperial Pacific International (IPI) LLC, had its license suspended three years ago. In April 2021, the operator’s license was suspended after it failed to settle regulatory and license fees.

Ahead of IPI’s hearing with the Commonwealth Casino Commission (CCC), which is set to decide whether or not the operator will see its license revoked, the company has filed for Chapter 11 bankruptcy, a report released by the Saipan Tribune reveals. The filing came Friday with the District Court for the NMI, with the company acknowledging an outstanding debt to creditors of more than $150 million.

Considering the Chapter 11 bankruptcy filing, IPI seeks to reorganize its operations. This is because such filing, if approved, can enable the company to restructure its operations, potentially settling outstanding debt with creditors and continuing to operate.

In a statement obtained by the publication, IPI confirmed the Chapter 11 bankruptcy filing as a “strategic move” that is part of its “comprehensive plan to restructure its financial obligations and position the company for a resilient comeback in the dynamic gaming industry.” Moreover, the company said that it remains committed to settling its outstanding debt with creditors, stakeholders and employees, despite the financial difficulties brought by the pandemic.

Howyo Chi, IPI’s director, revealed that the decision to file for Chapter 11 bankruptcy follows a prolonged evaluation and assessment. He explained: “We have arranged for sufficient debtor in possession financing that will ensure that IPI can meet its post-petition obligations, including making millions of dollars in payments to the Commonwealth Casino Commission once a settlement with the Commission is finalized.”

The Move Is Expected to Help IPI Address Financial Challenges

According to Chi, the Chapter 11 bankruptcy protection would enable the company to resolve its financial challenges while at the same time, “preserving jobs, honoring our commitments to vendors and suppliers, and revitalizing our operations to deliver exceptional gaming and entertainment experiences.”

The latest filing comes after form 204 was filed by IPI recently. In the form, the company disclosed that it owes a staggering $165,814,049 to creditors. The biggest sum, $62 million, IPI owes to the CNMI Treasury. Moreover, the company has nearly $35 million to pay to the MCC, while the CCC is after receiving $17.6 million in various penalties, as well as licensing fees.

Earlier this month, two Rolls Royce cars, assets of the Saipan casino operator, were sold for approximately $333,000. The luxury vehicles were only a couple of the large number of more than 100 cars, belonging to IPI that may be sold in the future. Considering the two recently sold cars, so far, 11 vehicles belonging to the operator have been sold.