More IPI creditors want to join receivership

With the first auction going off without a hitch and six more planned along the way, more of Imperial Pacific International CNMI LLC’s creditors are lining up to join the District Court-ordered receivership that was initially granted for USA Fanter Corp. LTD., but has now been assumed by former IPI employees and a handful of IPI’s’ other creditors.

Joshua Gray, who is suing IPI in the U.S. District Court for the NMI for wrongful termination, wrongful failure to hire, and intentional infliction of emotional distress, has filed a motion to participate in the limited receivership that is currently being carried out by Clear Management Ltd.

Gray, who previously asked that the court to grant him an over $20-million default judgment in his lawsuit against IPI, had asked the court to allow him to participate in the receivership back in October, but IPI opposed the motion and Gray has yet to file a response.

Now Gray, through his lawyer, Aaron Halegua, is asking the court to extend the time he is allowed to reply until Dec. 12, 2022.

“The next auction sale by the limited receiver is not scheduled until Dec. 9, 2022, and there are several sales scheduled thereafter. Therefore, the extension of time should not cause any disruption to that process,” Gray stated through his lawyer.

The motion further explained that Gray’s attorney has other obligations and needs additional time to file a response to IPI’s opposition.

“Gray’s counsel also has several other obligations in the coming days, including that one co-counsel is leaving Saipan, and thus an extension of time is needed to adequately prepare the reply brief. Gray has not previously requested any extension of time for this brief, and the extension will not impact any other deadlines,” Halegua said.

U.S. District Court for the NMI Chief Judge Ramona Manglona has since granted the extension.

Meanwhile, during a confirmation hearing last week to confirm the sales generated from the Oct. 7 auction, the Commonwealth, through attorney Dustin Rollins, also made a verbal motion to participate in the limited receivership over an unsatisfied judgment of over $9 million.

Manglona addressed the Commonwealth’s motion and heard Rollins’ arguments that the CNMI intends to pursue its rights regarding tax liens.

IPI did not oppose the CNMI’s motion to participate but requested to reserve the right to object.

In addition, Clear Management, through its attorney, Michael White, has informed the court that aside from the creditors who assumed the receivership and the creditors seeking to participate in the receivership, IPI has yet to satisfy court judgments for 21 other creditors in both federal and local court.

The creditors include:

• Sardini Group Inc., who has an outstanding $1,901,307 claim against IPI. They have also notified the court of their intent to participate in the receivership.

• Art Man Environmental Corp. has a claim against IPI on a construction contract in the amount of $83,555.78. Art Man has notified the federal court of its intent to participate in the receivership.

• Winzy Corp. has a claim against IPI in the amount of $179,217.50. They too want to partake in the receivership.

• J.M. Aquino, P.C. has a claim against IPI for engineering services in the amount of $190,648. J.M. Aquino has notified the federal court of its intent to participate in the receivership.

• Tang’s Corp. has a claim against IPI in the amount of $331,023.52. Tang’s Corp. has notified the court of its intent to participate in the receivership.

• Zhen’s Corp. has a claim against IPI for unpaid meals in the amount of $10,202.95. Zhen Corp. notified the federal court of its intent to participate in the receivership.

• Yantze Corp. has a claim against IPI in the amount of $248,000 and has also notified the federal court of its intent to participate in the receivership.

• RC LLC has a claim against IPI for manpower services in the amount of $69,722.25 and intends to participate in the receivership.

• Yu’s LLC. has a claim against IPI in the amount of $38,512. The plaintiff has notified the federal court of its intent to participate in the receivership.

• Ping Shun Corp. has a claim against IPI for food services in the amount of $443,900.50.

• Former IPI CEO Donald R.  Browne has sued IPI for unpaid wages in the amount of $110,210.62.

• Donny Vince Seman Fejeran has a claim against IPI for negligence, based upon the alleged failure of a scaffolding erected outside IPI’s building.

• Kan Pacific Saipan Ltd. has a claim against IPI for breach of a 2016 settlement agreement in the amount of $4,490,000 plus attorney’s fees and costs.

• The law office of Michael W. Dotts LLC has a claim against IPI for breach of contract for professional services in the amount of $425,764.44.

• Özcan Genç has two claims against IPI.

• Angel Playing Cards has a claim against IPI for the balance due on the purchase of playing cards in the amount of $68,000.

• Atkins Kroll Saipan has sued IPI for unpaid vehicle rentals in the amount of $78,403. A notice of intent to participate in the receivership has been filed by Atkins Kroll with the federal court.

• Ecolab Guam LLC has a claim against IPI for unpaid merchandise purchases in the amount of $17,629.84. The plaintiff has filed a notice of intent to participate in the receivership.

• G4S Security Services (CNMI) has a claim against IPI for unpaid security services in the amount of $11,700.23. G4S has filed a notice of intent to participate in the receivership.