Imperial Pacific International (IPI) is currently desperately trying to keep its casino exclusivity in Saipan, although its Imperial Palace casino remains inoperational. At the same time, the gambling company has reportedly succeeded to pay one of its massive bills, even though it remains in debt of millions of dollars to get back to financial stability.
About a week ago, a judge gave the green light to the money transfer from a trust account to USA Fanter – the contractor to which Imperial Pacific International was supposed to pay more than $2 million worth of construction works. According to media reports, by making the $251,581 transaction, the company finally settled the legal dispute between the two operators.
The controversy originates more than three years ago, with the construction contractor repeatedly trying to get the subsidiary of the Chinese investment holding company to pay what it owes. After the company continuously refused to do so, USA Fanter eventually filed legal action against the casino operator in 2019.
After a judge made a decision in the lawsuit and ordered Imperial Pacific International to pay up, the company never did, which eventually led to the embattled operator going into receivership. As a result, a series of auctions of IPI assets have been held, with the property left with almost nothing than the iconic facade that used to portray the luxury and grandeur associated with the place.
IPI Still Trying to Fight Serious Financial Issues
Imperial Pacific International was forced to place $2.45 million in a trust while it took the judge’s decision in the USA Fanter case to the appellate court. In July 2023, the two companies finally agreed to settle the then-ongoing litigation in a move that literally wiped out all of the IPI’s debt.
That left the Imperial Pacific International Holdings Limited subsidiary with an obligation worth only $251,581, which the company finally managed to hand over. Under the provisions of the settlement agreement, all USA Fanter claims have been satisfied with the completion of the transaction.
Imperial Pacific International has been facing financial troubles as a result of a series of lawsuits leading to additional creditors’ names being added to the list through the company’s receivership, including the former executive Joshua Gray who won a $5-million discrimination lawsuit several months ago. In addition, the company owes millions to the Commonwealth of the Northern Mariana Islands (CNMI) and the territory’s casino regulatory body, the Commonwealth Casino Commission (CCC).
The operator’s Imperial Palace venue is not even close to starting operation, which basically means that its state is likely to continue to deteriorate. This is an issue that is expected to make it even more challenging for the property to be able to welcome visitors in the future.
As mentioned above, Imperial Pacific International has been trying to retain its exclusivity in the region. The Ninth Circuit of the US Court of Appeals has already ruled that the company has no legal reason to maintain that exclusivity, especially considering the fact that the company breached the terms of its contract on a number of occasions, which could void all of its agreements.