A week ago it was announced and confirmed that Tinian Dynasty Casino in the Commonwealth of Northern Mariana Islands (CMNI) had applied for permission to reopen today and it had been granted contingent upon conditions set by Tinian Casino Gaming Control Commission executive director, Lucy Blanco Maratita.

Yesterday, local media reported that Hong Kong Entertainment Investments Ltd. (HKE) had filed for Chapter 11 bankruptcy. This form of bankruptcy in the US allows a company to enter into agreements with creditors to continue business. The CNMI is a US Territory which in addition to Tinian, also includes the inhabited Islands of Rota, and population center of Saipan.

The Saipan Tribune is reporting that according to court documents, HKE has total debts of nearly five times its assets of $55.2 million; with total liabilities at $258.5 million.

The company plans to reorganize and stay open and a spokesperson told local media that they will first seek permission to pay salaries of  employees and federal and local taxes due.

Unsecured claims against the company include $75 million due to the US Treasury via the Treasury’s Financial Crimes of Enforcement Network (FinCEN); over $285,000 owed the IRS, and more than $225,000 owed to the CNMI Treasury. However the $75 million fine from FinCen was reportedly settled with a $3.04 million forfeiture in July.

There has been no news of the casino opening on the 15th as planned. The casino closed in September citing devastation following Typhoon Soudelo.

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