IPI and CCC head for settlement; TRO extended anew

The temporary restraining order granted in favor of Imperial Pacific International (CNMI) LLC and Best Sunshine International Ltd. against the Commonwealth Casino Commission has been extended another 30 days as parties in the case work toward a settlement.

According to an order from U.S. District Court for the NMI Chief Judge Ramona Manglona yesterday, the TRO that prohibits the CCC from moving forward with the revocation of IPI’s license, which was set to expire on June 8, is extended for another 30 days.

“For good cause shown, the TRO issued by the court on May 23, currently set to expire on June 8, is hereby extended for a period of 30 days to expire on Friday, July 8,” she said.

Manglona stated in her order that the court extends the TRO because the parties in the case have informed the court that they are making significant progress toward a settlement agreement.

“Pursuant to Federal Rule of Civil Procedure 65(b)(2), the court extends this TRO based on the parties’ representation that they have made significant progress toward settlement and require additional time to finalize the terms of an agreement in principle and to enter a comprehensive settlement agreement memorializing those terms, to allow them time to resolve this matter without proceeding to an order to show cause hearing for a preliminary injunction,” Manglona said.

The judge also placed a stay on the complaint filed by IPI until a settlement is reached, or if the parties inform the court that settlement talks have failed, among other things.

“Briefing on plaintiffs’ complaint and plaintiffs’ emergency motion for temporary restraining order and order compelling arbitration, including the time for defendant to file its opposition to plaintiffs’ motion, is hereby stayed for a period of 30 days. The stay shall remain in place until (a) either of the parties notify this court that efforts to enter a settlement have failed and requests that a new briefing schedule and show cause hearing be set by this court; or (b) the parties request with good cause shown to further extend the stay; or (c) plaintiffs file a motion to dismiss their complaint,” she said.

Manglona also set a status conference for July 1, where parties are ordered to appear and inform the court of any progress they have made.

The order to show cause hearing scheduled for June 6, has also been vacated.

Last week, Manglona granted IPI’s request for a TRO to prevent CCC from holding a hearing on May 24 and 25 to revoke IPI’s exclusive casino license. Manglona later extended the TRO against CCC to allow CCC to properly respond to IPI’s complaint against the commission.

Manglona noted, among other things, that IPI anticipates receiving $150 million in financing before the end of May to make payments due to the CCC and other creditors to resume its operations.