IPI receivership extended anew

The U.S. District Court for the NMI has extended the stay on U.S.A. Fanter Corp.’s limited receivership against Imperial Pacific International (CNMI) LLC that has now been assumed by the seven workers who were suing IPI for labor violations and human trafficking allegations.

In an order issued by District Court for the NMI Chief Judge Ramona V. Manglona on Wednesday, she extended the stay placed on the receivership that was originally granted to U.S.A Fanter after granting the stipulation (agreement) among all parties involved that the receivership would be assumed by the seven workers who previously sued IPI for labor violations.

The receivership to sell IPI’s assets, including its gaming machines, cars, etc., is extended again to April 13.

In her order, Manglona stated that the seven workers shall assume all the rights as to the receivership previously held by Fanter because of the size of the workers’ judgment and because IPI has shown it intends to provide security in this case while their appeal remains pending.

The seven workers are Tianming Wang, Dong Han, Yongjun Meng, Liangcai Sun, Youli Wang, Qingchun Xu, and Duxin Yan.

Because the workers have been included in this receivership, the court has also amended the amount that the Limited Receiver should be authorized to collect through the liquidation of IPI’s gaming assets to $6 million plus any additional amounts, including attorney fees and various court fees.

However, pursuant to the Stay Agreement that was filed in court last month, the seven workers have agreed to stay enforcement on their judgment pending IPI’s appeal, and to stay the limited receivership after IPI posted an initial $1 million bond.

The seven workers currently have a judgment against IPI for $5,430,595.58 and a pending application for attorneys’ fees and costs.

Previously, the seven workers, U.S.A. Fanter, and fellow IPI creditor Ping Shun Corp. each obtained and served a writ of execution for certain IPI property, including casino gaming equipment.

On Oct. 26, 2021, the court granted an unopposed motion by Fanter and issued an order appointing Clear Management Limited as a limited receiver to liquidate IPI’s casino gaming equipment to satisfy Fanter’s judgment. In addition, the court allowed the seven workers and Ping Shun to file a motion or stipulation concerning the operation of the receivership and distribution of proceeds.

Then, on Dec. 10, 2021, when IPI agreed to post a “supersedeas bond” in order to stay further enforcement by Fanter, the seven workers and Ping Shun filed a motion to amend the court’s order to effectively allow them to step into Fanter’s shoes and pursue the receivership.

IPI, seeking to avoid the liquidation of its casino gaming equipment, posted a supersedeas bond to secure Fanter’s judgment and reached agreements with the seven workers and Ping Shun to secure their judgments pending appeal too.

In January 2022, the seven workers and IPI reached an agreement to stay enforcement of their judgment as long as IPI posts a supersedeas bond(s) in the total amount of $6,000,000 by June 30, 2022.

The parties also agreed that, while IPI works on securing a supersedeas bond(s), IPI will provide various collateral until it does so, including recognizing the workers’ right to proceed with the receivership in the event that IPI fails to comply with the agreement.

On Feb. 2, 2022, the court approved the stay agreement, in its entirety.