Will IPI Finally Unload Saipan Casino?

Embattled Saipan casino operator Imperial Pacific International may at last be ready to put its Garapan casino resort (l.) on the block. IPI has informed the U.S. District Court it could have a divestiture plan sometime this month.

Will IPI Finally Unload Saipan Casino?

Imperial Pacific International LLC (IPI), the company behind a failed casino resort on the western Pacific island of Saipan, says a sale of the property could soon be an option, depending on agreements with its creditors.

According to the Saipan Tribune, at a June 27 hearing before the U.S. District Court for the Northern Mariana Islands, IPI attorney Chuck C. Choi said discussions continue among the operator, its creditors and the U.S. trustee.

They must determine whether to sell the Imperial Pacific Palace through a plan that would permit the sale under Section 363 of the U.S. bankruptcy code. Saipan is the largest island in the Commonwealth of the Northern Mariana Islands (CNMI), which have been a U.S. territory since World War II.

Creditors initially tried to block IPI’s bankruptcy request, claiming more than $160 million in debts.

Last month, IPI’s parent company was delisted from the Hong Kong Stock Exchange. And on July 25, in yet another court hearing, the group will try to resolve its dispute with the government of the CNMI over additional penalties and fines.