Imperial Pacific Seeks Court Approval To Sell $10M In Saipan Hotel Casino And Assets
Imperial Pacific International (IPI), a Hong Kong-based Chinese investment holding company, has made headlines when it asked for permission from a federal bankruptcy court to sell a hotel casino and other key assets in Saipan to Loi Lam Sit for the proposed amount of $10 million. The request marks a pivotal moment in the company's restructuring efforts under Chapter 11 of bankruptcy.
Introduction to sales offers:
Chuck Choi, a lawyer representing IPI, has formally approached the court to approve the process of competitive bidding and sale of IPI's main asset disposal. The move is aimed at ensuring the best possible outcome for the creditors and stakeholders involved.
Choi also asked the current "horse buyer," Loi Lam Sit, or potentially a higher bidder, for a hearing on Nov. 20, 2024 to finalize the sale of IPI's properties without liens and contingents. The term "horse buyer" is used in bankruptcy proceedings to describe first-time bidders setting up a basic offer that others must exceed in subsequent bids.
Loi Lam Sit, from Hong Kong, is the general manager of Top Pride International Ltd., a company specializing in wholesale distribution of cosmetics.
IPI's casino, which is part of the hotel's structure located on 19,204 sq m of land leased from CNMI's public land, is up for grabs. It is also up for auction, as is IPI's stake in Imperial Pacific Properties LLC
As reported by Marinas Variety, IPI's filing for bankruptcy came amid a declaration on April 19, 2024 that it owed more than $165.8 million to creditors. The COVID-19 pandemic had a major impact, including the closure of IPI's operating casino in March 2020, and in 2021, construction of the hotel was halted, exposing and worsening its structure. Choi estimated that completing hotel construction would require between $100 million and $150 million in investment.
Financial arrangements and auction conditions:
During a court session on June 27, 2024, IPI was approved for up to $1.4 million in unsecured priority financing from Loi Lam Sit to cover Chapter 11 administrative costs through the end of the year. This funding is critical to maintaining liquidity in bankruptcy proceedings.
Choi emphasized that IPI and the Unsecured Creditors Commission have awaited court approval and confirmed the possible overbidding possibilities and potential terms of sale of qualified bidders. Assets set for auction include personal property, designated contracts, real estate leases and stakes in Imperial Pacific Properties LLC.
Income tax bonds, casino licenses, personnel records, and all records related to hotel or casino customers are excluded from the sale.
The terms of the sale stipulate a $2 million deposit that applies only if the stalking horse bidder wins. The final sale will be finalised within seven days of the court's approval of the sale motion, and all transactions must be finalised by Dec. 31, 2024.
Choi believes that the sketchy bidding process will maximize the asset's value through open auctions, and ensure that the trustee has the best returns for the interests of the real estate and its creditors. This strategic approach aims to protect the interests of all parties involved in the bankruptcy process. 파워볼사이트