The final resolution of the assets of the now defunct Imperial Pacific International’s casino in Saipan continues to stretch out, with the auction of IPI’s assets postponed for 30 days.
This will allow IPI enough time to settle a lawsuit with Fanter, its former contractor, which sued for nonpayment of services. The contractor was hired in 2019 to build a casino, hotel complex on Saipan in the U.S. Commonwealth of Northern Mariana Islands.
IPI’s license for the Imperial Palace Saipan, has been suspended indefinitely and the casino complex has been closed since March 2020 as a result of the pandemic. The suspension followed IPI’s failure to pay annual license fees of $15.5 million and regulatory fees of $3.1 million last year and failure to pay vendors, among other issues.
IPI has requested the Superior Court of Saipan to conduct a judicial review of its suspensions.
The receiver, Clear Management, had scheduled six auctions beginning November 30 to raise funds to pay USA Fanter Corp. $2.08 million. The assets include more than 400 slot machines, tables, chairs, gaming utilities and a surveillance system.
If they are able to agree to terms, the auction will be terminated, as will the appointment of a receiver. If not, the auctions will resume December 31.
Whether the auctions go forward or not, the unfinished casino resort along the Garapan waterfront remains to be dealt with.
A possible complication is that Fanter has filed a second complaint, alleging that IPI failed to pay a constructing staging lease agreement, that it is owed $61,600 in rent and $87,772 for work completed. Fanter also seeks to be paid for supply, delivery and rental of heavy equipment.
IPI has asked the court to dismiss the new complaint.
Despite its existential problems, IPI continues to be listed on the Hong Kong Stock Exchange, and to provide updates, which suggests it believes it has a future—or at least to be able to sell this asset.
IPI first bid for and won the 25-year license to build and run a Saipan casino in 2014. It opened a temporary facility in 2015 called Best Sunshine Live and offered generous commissions compared to Macau properties, which drew large volumes to its tables.
However the company soon saw payments exceeding revenues. That was before the pandemic arrived. The company had been granted several deadline extensions, which showed that the Commonwealth was heavily invested in the casino resort’s success.
Legislators have filed a bill to end IPI’s monopoly and issue several more licenses for more modest casinos.
