In the Commonwealth of the Northern Mariana Islands and beleaguered casino operator Imperial Pacific International Holdings Limited has reportedly been told that it will be placed into receivership if it does not pay off a $1.2 million debt by Friday.
According to a report from Inside Asian Gaming, the Hong Kong-headquartered firm is responsible for the American territory’s under-construction Imperial Palace Saipan but has been facing financial collapse owing to a dearth in overseas gamblers caused by the coronavirus pandemic. The source detailed that the operator is moreover facing the imminent loss of its casino license due to its inability to fulfil a multitude of financial obligations including one to former contractor Pacific Rim Land Development said to be worth in the region of $6.8 million.
Dramatic drought:
Imperial Pacific International Holdings Limited reportedly opened the casino within its $650 million Saipan facility in July of 2017 but has since struggled to complete work on an adjacent 500-room hotel. The whole project was then purportedly thrown into financial difficulties after being forced to close in March as a consequence of the ongoing coronavirus pandemic.
Serious sanction:
To make matters worse and the United States District Court for the Northern Marianas Islands has now reportedly instituted the Friday afternoon deadline after last week naming local lawyer Joyce Tang as the official receiver who is to be in charge of liquidating all of the firm’s local assets should it not succeed in paying off its debt. This purportedly came after the federal bar had found Imperial Pacific International Holdings Limited and its Chairperson, Cui Li Jie, in contempt of court for violating an earlier consent judgement concerning its failure to pay the wages of its employees.
Escalating obligations:
Imperial Pacific International Holdings Limited is now reportedly on the line for the $1.2 million judgement while furthermore being required to place some $800,000 in escrow by Friday so as to cover all of the future wages of its employees. This all came after the casino operator was last week sanctioned by the Commonwealth Casino Commission for violating five of its license conditions that could amount to an additional commitment topping $58 million.
Individual inventory:
Tang is a principal at Guam’s Civille and Tang PLLC law practice and reportedly explained that she would likely appoint specialists to conduct appraisals of the casino firm’s local assets should it fail to comply with the federal court’s order. She moreover purportedly revealed that these holdings could well include a pair of crystal dragons sitting in the lobby of the Imperial Palace Saipan and that are said to be worth approximately $129 million.