IPI emergency motion wants stay in limited receivership

In an attempt to, again, suspend the limited receivership on its casino, Imperial Pacific International (CNMI) LLC has filed an emergency motion for a stay in the receivership pending an appeal with the U.S. Court of Appeals for the Ninth Circuit.

Last Nov. 9, IPI, through attorney Samuel Salyer, filed a notice of emergency motion to stay under Circuit Rule 27-3. It states: “Imperial Pacific International (CNMI), LLC, provides notice to all parties to this action that, on Nov. 9, 2022, in connection with case no. 22-16747 in the United States Court of Appeal for the Ninth Circuit, Defendant-Appellant IPI filed an Emergency Motion to Stay Under Circuit Rule 27-3.”

Prior to that, IPI filed an appeal with the U.S. Court of Appeals for the Ninth Circuit to overturn the U.S. District Court for the NMI’s decision to deny IPI’s previous motion to stay the limited receivership.

Last October, District Court for the NMI Chief Judge Ramona V. Manglona denied the stipulated request made by IPI and some of its creditors to stay the limited receivership again.

During the hearing, IPI’s judgment creditors informed the court that they would soon be filing notices of satisfaction of judgments, proving that IPI has no outstanding judgments against them. However, the court still ruled against the motion to stay. 

In her 16-page order, Manglona denied another stay on the receivership until such time that IPI can demonstrate that it has satisfied all pending judgments with her court.

“When IPI can demonstrate that it has satisfied the pending judgments in this court, the court may reconsider whether to reinstate the stay or even terminate the limited receivership. Once IPI can demonstrate that it has satisfied judgments for the current judgment creditors in this court, IPI may renew its motion to stay and retain its assets,” she said.

Mangloña explained that one of the reasons for her denial is because of IPI’s history of delayed payments or even non-payments.

“First, IPI has had an extensive history of delayed or non-payment to a multitude of creditors. This court has expended considerable resources and time giving IPI an opportunity to make amends with those creditors. Yet, despite numerous status conferences, orders to show cause, orders in aid of judgment—IPI’s promises have often been empty or delayed,” she said.

Another reason, the court noted, is because even though IPI can demonstrate that it has satisfied pending judgments of those who have assumed the receivership after U.S.A Fanter…there are still other creditors who have yet to be paid in and outside of the District Court.

Currently, court-appointed limited receiver, Clear Management, through lawyer Michael White, is awaiting the court’s confirmation of the sales made following the closing of IPI’s gaming equipment auction last Oct. 7. The sales totaled $410,000.