Auction of IPI assets moved to Dec. 31

The U.S. District Court for the NMI has postponed the auction of some of Imperial Pacific International (CNMI) LLC’s equipment in the lawsuit of USA Fanter Corp. Ltd., after IPI’s counsel verbally asked the court to reconsider the appointed limited receiver.

During a hearing last Monday, District Court for the NMI Chief Judge Ramona V. Manglona briefly addressed IPI’s motion to stay the sale of their assets while they have an appeal pending with the U.S. Court of Appeals.

After hearing the arguments of both parties to IPI’s motion to stay judgment pending appeal and motion for relief, Manglona granted a temporary stay on the Nov. 30 auction—the first of six—for two weeks.

Manglona said she will issue an order modifying the limited receivership and to reflect the postponement of the sale of IPI’s property to Dec. 31.

The judge gave the parties up to Dec. 8 to work out a stipulation and details regarding security interest.

During last Monday’s hearing, Kevin T. Abikoff, counsel to IPI, asked the court again to reconsider its appointment of the limited receiver in the case and vacate that order. The limited receiver appointed in this case is Clear Management Ltd, a company headed by Silver Heritage Group co-founder Tim Shepherd.

Abikoff argued that IPI is prepared to place the full judgment amount of $2,089,345.28, in a restricted account designated by USA Fanter, or the court, fully securing USA Fanter for the duration of IPI’s appeal of the judgment in this case to the Ninth Circuit Court of Appeals.

Back in May 4, Manglona issued an order directing entry of an amended final judgment on the mechanic’s lien. IPI filed an appeal on the order while USA Fanter went on to apply for a writ of execution on the judgment, and filed a motion for limited appointment of receiver in aid of execution that the court granted in October.

Abikoff informed the court that IPI has funds available to satisfy USA Fanter’s judgment and is willing to secure those funds in a restricted bank account.

“The cash fund created by IPI, under this court’s direction, will better secure USA Fanter—providing more cash than would be realized through the sale of the property subject to the receivership and will also better serve the interests of IPI and its creditors by ensuring that IPI’s assets are not sold in the midst of economic conditions. Sale of the gaming equipment at this time would generate significantly less revenue to satisfy USA Fanter’s judgment than IPI’s proposal to place $2,089,345.28 in a court-designated account,” he said.

The plaintiff, USA Fanter Corp. Ltd., sued IPI for failing to pay the full contract amount due for labor and materials it provided for the improvement of IPI’s real property in Garapan.