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‘Dynasty decision intended to restructure financials’
The administration of Gov. Eloy S. Inos sees the filing of Chapter 11 bankruptcy petition by the owner of Tinian Dynasty Hotel & Casino as a company decision that would allow it to remodel its financial and organizational structures.
Asked for comment about Hong Kong Entertainment (Overseas) Investments Ltd.’s bankruptcy petition, the Inos administration, through press secretary Ivan A. Blanco, said yesterday that HKE’s move would allow Tinian Dynasty’s business to continue while maintaining a level of solvency to meet its financial obligations.
Blanco said it is their understanding that HKE’s board of directors recently filed the Chapter 11 bankruptcy petition in federal court due to insufficient assets to meet is liabilities.
Blanco said various debt repayment plans may include debt reduction or an extension of the debt repayment period.
“Of course, the corporation will have to enter into negotiations with its creditors to determine the best financial and organizational structure to clear the debts,” he said.
Blanco said this bankruptcy filing allows the corporation to continue to operate its hotel and casino businesses while working toward satisfying its financial obligations.
According to HKE’s petition, the company has total assets of $55.2 million but total liabilities of $258.5 million.
Among the creditors listed as having priority unsecured claims is the CNMI Treasury, which has a total claim of $225,671.31. The Commonwealth Utilities Corp. also claims for payment of past due utilities in the amount of $649,180.84 and about $180,000 in estimated October 2015 utilities.
HKE counsel Timothy H. Bellas earlier disclosed that one of their first priorities will be to ask the bankruptcy court for permission to pay the unpaid salaries of Tinian Dynasty employees and unpaid federal and local taxes.
