Imperial Pacific International (IPI), which holds a monopoly on casino gaming on the island of Saipan, has appealed to a U.S. district court for more time to settle a lawsuit filed by its contractor. Without a stay or suspension of the proceedings, according to IPI, it may be forced to close the star-crossed integrated resort for good.
Saipan is part of the Commonwealth of the Northern Mariana Islands, a U.S.-controlled territory.
Asia Gaming Brief reports that IPI asked the U.S. District Court for the commonwealth to stay or suspend proceedings related to a lawsuit filed by Pacific Rim Land Development LLC. In April, Chief Judge Ramona V. Mangola ordered IPI to pay $5.65 million to Pacific Rim for alleged breach of contract. The company then appealed to the Ninth Circuit in an attempt to reverse the judgment, a decision that is still pending.
But on May 22, the judgment became payable. IPI counsel Michael W. Dotts said if the judgment is enforced while the appeal is pending, the company will be unable to pay it, and that could mean the end of a lavish resort that began with great promise, but has since been plagued by setbacks and legal problems, from massive unpaid VIP debt to typhoon damage to allegations of unfair labor practices that delayed the construction.
Dotts blamed Covid-19 for straining IPI’s resources. The impact of the virus has made it difficult for the company to cover payroll or pay its utilities. Some 1,066 jobs are at stake. “Failing to stay proceedings will only exacerbate IPI’s current financial distress,” he said.
