IPI creditors oppose extended stay on IPI receivership

The other creditors who have essentially piggybacked on the receivership granted in favor of U.S.A. Fanter Corp., Ltd. in its breach of contract suit against Imperial Pacific International (CNMI) LLC have filed a motion opposing IPI’s recent request to extend the stay on the receivership.

Last Dec. 10, the seven workers who sued IPI for labor violations, Ping Shun Corp., and “other creditors” filed a motion, called the “Other Creditors’ Motion,” to amend the U.S. District Court for the NMI’s previous order establishing a receivership to liquidate IPI’s casino gaming equipment. They want to the order to also allow the receiver to sell assets sufficient to satisfy the other creditors’ judgments and permitting any of the other creditors who has not been adequately secured to effectively step into Fanter’s shoes and pursue the receivership.

Earlier this week, IPI filed a motion stating that a bond had been posted to secure USA Fanter and therefore requested that the court further stay the receivership, which had been postponed to the end of this month.

However, the creditors, in a joint motion filed yesterday, said they oppose a further extension of the stay of the receivership unless or until agreements with IPI to adequately secure their own judgments have been reached.

“The parties are working to reach agreements to adequately secure the other creditors’ judgments. If such agreements are reached, IPI’s opposition to the other creditors’ motion will become moot and plaintiffs’ opposition to IPI’s motion to extend stay will become moot,” the joint motion stated.

Accordingly, the parties, including IPI, agree that no party shall be required to file an opposition prior to the status conference currently scheduled for Dec. 17.

“If the parties have not reached agreements to secure the other creditors’ judgments by the time of the status conference, then the parties and the court shall discuss the proper way to proceed on the two motions, including whether the court would like any briefing on the motions,” the parties agreed.

According to IPI’s motion to extend the stay on the receivership, IPI, through counsel Kevin T. Abikoff, filed a notice with the District Court for the NMI stating that in satisfaction of the terms of its stipulation with USA Fanter, it had secured a supersedeas bond in the agreed upon amount of $2.45 million, secured by Suretech Insurance Company, as surety on behalf of IPI as principal.

Abikoff stated that pursuant to parties’ stipulation regarding motion to stay judgment pending appeal, IPI now requests approval of its supersedeas bond in the amount of $2.45 million, which will stay execution on the judgment pending appeal.

The lawyer argued that as USA Fanter’s judgment is now sufficiently secured pending appeal and will not be substantially injured by a stay on the limited receivership.