Court denies creditor’s request to further stay IPI receivership

The U.S. District Court for the NMI has denied the request of one of Imperial Pacific International (CNMI) LLC’s creditors to further stay the limited receivership that was initially granted in favor of USA Fanter Corp. Inc.

Chief Judge Ramona Manglona released an order yesterday stating that the court denies Ping Shun Corp.’s previous request to further stay the limited receivership against IPI because the plaintiff’s standing to enforce the receivership is currently subject to dispute.

Manglona did approve the stay agreement between IPI and Ping Shun to stay all enforcement proceedings in Ping Shun’s judgment only.

According to the order, in the case filed by USA Fanter, the court granted the plaintiff’s motion to appoint a limited receivership and set the terms of the receivership.

However, Ping Shun, along with other IPI creditors, moved to amend the court’s initial order to basically include them and allow them to step into USA Fanter’s shoes in order to satisfy the judgments they have against IPI.

“Ping Shun, along with ‘Other Creditors,’ have moved to amend the court’s order granting limited receivership in USA Fanter to continue liquidating IPI’s gaming equipment [and] to make explicit that any judgment creditor who has not been adequately secured by IPI may effectively step into the shoes of Fanter and pursue the receivership under the same terms and conditions as set forth in the [limited receivership] order,” Manglona said.

Because the “other creditors” motion has not been fully briefed, and the parties have agreed to extend the time for briefing, Ping Shun does not have proper authority to request a stay on the limited receivership.

“The court has not ruled on whether Ping Shun or ‘other creditors’ may step into the shoes of U.S.A. Fanter and therefore stay the receivership. The court therefore instead construes Ping Shun and IPI’s stipulation as a stipulation to vacate briefing in the USA Fanter matter regarding the motion to amend. The court will accordingly vacate briefing as well as the Feb. 17 hearing,” the judge stated.

Initially, IPI’s opposition to Ping Shun and the “other creditors” motion to amend was due on Feb. 4, and a hearing was scheduled for Feb. 17.

According to a previous article on the Saipan Tribune, Ping Shun, one of the other creditors, officially filed its stipulation with the court stating that it has executed an agreement with IPI to stay enforcement of its judgment in exchange for IPI securing a supersedeas bond in the amount of $445,000 on or before Feb. 22.