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‘All IPI assets could be liquidated’
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Posted on Mar 04 2021
The decision whether to place Imperial Pacific International (CNMI), LLC under a receivership and whether to appoint Joyce Tang to that position, which will be held tomorrow, March 5, could develop into full liquidation of IPI’s assets to satisfy other judgments, or provide the framework for a liquidation process, according to IPI counsel Michael Dotts.
According to Dotts, the appointed receiver may be required to sell all of IPI’s assets that are currently valued at $11,199,680.09 in total because IPI is facing several lawsuits that are nearing final judgment and thus full liquidation of the company is possible.
Dotts said that one of the main issues that came up at the March 1, 2021, hearing was the scope of the receivership. Originally, it was only supposed to cover the sale of property enough to satisfy the U.S. Department of Labor consent judgment. However, the amount of assets needed to be sold could exceed $10 million— the consent judgement that will purge it of contempt (the base amount of $1,982.793.00), plus $9,416,887.09 in tax liability owed the CNMI, plus $800,000 in other amounts owed employees.
According to Dotts, the amount owed USDOL to purge the contempt and the interests of the CNMI under the tax lien has to be satisfied first.
The CNMI recorded a tax lien against IPI on Aug. 20, 2020, in the amount of $9,416,887.09. The tax lien applies to all property of IPI, both real and personnel.
Even though the tax lien came later than the consent judgment, Dotts said that the tax lien takes priority over the consent judgment because the tax lien was recorded.
As for the $800,000 in back wages that’s owed employees, Dotts said that all amounts owed IPI’s employees should be paid first so that IPI can avoid being held in contempt.
Dotts said that IPI began having financial problems that impacted payroll in June 2020.
