IPI receivership suspended until…

The receivership that was ordered by the U.S. District Court for the NMI against the Imperial Pacific International (CNMI) LLC and parent company Imperial Pacific International Holdings Ltd. last March 10 is conditionally suspended until such time when the U.S. Department of Labor notifies the court if IPI fails to pay off its consent judgment.

U.S. District Court Chief Judge Ramona Manglona ordered IPI to pay the remaining balance of the April 2019 consent judgment starting this Thursday, April 1, until Dec. 1. The amount that IPI owes is $1,478,430.72 which includes the first amended consent judgment pf $1,430,574.72 plus $47,856 in unpaid wages.

To settle this amount, Manglona ordered IPI to pay $164,270.08 every first of the month starting April 1, 2021, until Dec. 1, 2021. That’s nine installment payments of the total amount owed.

She said if IPI fails to make payment at any time, the USDOL secretary should give a written notice of nonreceipt of payment to IPI. “The defendants shall have 10 business days from the receipt of notice that the payment was not received to trace the payment if it was sent and an additionally 20 calendar days to resolve any issues with a wire transfer if they provide proof to the [U.S. Labor] secretary that the payment was sent by wire,” said Manglona.

If IPI fails to make payment after 10 days of missing the payment due date, then the USDOL secretary can declare a default of the amended consent judgment by filing a notice of default with the court and provide a copy of the notice to IPI, Manglona said. In the event the U.S. Labor secretary declares a default, IPI will then be made to pay the full gross amount outstanding and due under this consent judgment, plus post-judgment interest at the rate applicable to deferral judgments from March 30, 2020, until the monetary amounts due are fully paid.

If IPI still fails to make payment five days after 10 days of missing payment, then the receiver—in this case Guam lawyer Joyce Tang—will be authorized to exercise all her powers as receiver to sell IPI’s assets, including but not limited to the Flame Tree Terrace Parcels property to pay the total judgment amount and the receiver’s costs and fees.

Manglona said if IPI fully complies with the first amended consent judgment and make all the payments required from April 1, 2021 to Dec. 1, 2021 then the Labor secretary will file a satisfaction of judgment notice.