Pacific Rim wants to sell off IPI assets

Pacific Rim Land Development LLC has issued a motion asking the U.S. District Court for the NMI to authorize it to auction Imperial Pacific International (CNMI) LLC’s assets to satisfy the balance due on a civil judgement in favor of Pacific Rim.

In a motion filed by Pacific Rim attorney Colin Thompson, Pacific Rim wants the federal court to issue an order authorizing the sale of IPI’s gaming machines and vehicles to raise about $3 million, to reduce the previous judgment entered against IPI.

The balance due on the judgment is about $5.53 million.

The motion asked the court for an order for the turnover, assignment, and sale of gaming machines and heavy equipment and vehicles owned by IPI.

The motion stated that, under CNMI law, IPI’s gaming machines, heavy equipment, and vehicles may now be sold in an auction, with the sale’s proceeds applied in satisfaction of the judgement.

Pacific Rim anticipates the auction to happen on two separate dates, Nov. 23 and Dec. 7, to maximize proceeds.

According to Thompson’s motion, IPI owns 404 gaming machines evaluated by Clear Management Group to be worth $2,250,000.

Thompson said he has also served the CNMI Department of Public Safety commissioner with an Open Government Act request for inspection and copies of all certificates of title, certificates of registration, and all ownership documents issued by the Bureau of Motor Vehicles to IPI.

In total, 45 vehicles, including heavy equipment, were identified and the ownership documents confirmed that none were encumbered by any lien.

In Thompson’s declaration to support the motion, he listed the 45 vehicles and the blue book value of each vehicle and heavy equipment. The total estimated value of the vehicles was $898,664.

Thompson said a notice and sale procedure requires a minimum of five days’ published notice in the newspapers. However, should the selling officer wish to advertise off-island, Thompson said the cost for publication are anticipated to be in excess of $2,500 and any such additional notice is not only expensive, but is far more than other statutory provisions require.

Pacific Rim sued IPI for breach of contract for refusing to pay for services in the amount of $5.65 million for substantially completed or completed agreed-upon construction work for IPI’s casino-resort project on Sept. 30, 2018.

On April 27, 2020, the District Court entered a judgment in favor of Pacific Rim in its lawsuit against IPI for breach of contract and breach of promissory note.

On May 2, 2020, the federal court entered an amended civil judgment in favor of Pacific Rim in the amount of $6.8 million, including the principal amount and attorney’s fees and costs.

On June 22, 2020, Pacific Rim filed a motion for an order in aid of judgement. The court then issued an order granting in part and denying in part the motion for order authorizing the release of funds to the plaintiff and directing the clerk of court to release the funds received from Bank of Saipan to Pacific Rim in the amount of $1,383,869.45.