IPI not out of the woods yet in receivership case

Although the U.S. District Court for the NMI has relieved Imperial Pacific International (CNMI) LLC of the final judgement granted in favor of U.S.A. Fanter Corp., Ltd., the receivership has not been dissolved completely as other creditors have stepped into USA Fanter’s shoes as to the limited receivership.

According to an order from District Court for the NMI Chief Judge Ramona V. Manglona, she found the $2.45 million bond secured by IPI was sufficient to relieve the casino investor of the court’s judgment in favor of USA Fanter, which includes the limited receivership and the mechanic’s lien the court granted in the contractor’s favor.

“The court finds that IPI has fulfilled its obligation to satisfy the bond requirements under Rule 62(b) and Local Rule 62.1 and therefore a stay of USA Fanter’s judgment pending appeal is appropriate. Further, because all means of satisfaction of judgment are now stayed, relief from the limited receivership as applied to this case is warranted,” she said.

However, Manglona did not fully dissolve the receivership as other creditors have “piggybacked” on the judgment originally granted in favor of USA Fanter.

“Federal Rule of Civil Procedure 60(b) states that the court may relieve a party…from a final judgment, order, or proceeding based on a number of circumstances, including that the judgment has been satisfied, released, or discharged or any other reason that justifies relief. Here, because IPI has fulfilled its bond obligations, the court finds that relief under Rule 60(b) is appropriate in this case. This decision does not, however, dissolve the receivership as it applies to the Other Creditors just yet,” the judge stated.

Currently, the stay on the receivership until the end of January is as to the receivership between IPI and its other creditors.

The court has ordered the parties to return to court on Feb. 3 to hear arguments on an extension on the stay of the receivership.

In her order, Manglona also granted a stay on USA Fanter’s previous motion for foreclosure of a mechanic lien.

“Because the bond has been satisfied pursuant to Rule 62(b), all means of judgment including foreclosure of a mechanic’s lien is now stayed. Therefore, USA Fanter’s Motion to Foreclose Mechanic’s Lien is now deemed withdrawn and/or moot,” Manglona said.