Over $300K of IPI assets sold

The District Court for the NMI has recently confirmed that court-appointed receiver Clear Management Group may go ahead with the sale of Imperial Pacific International (CNMI) LLC’s assets. The first and most recent transaction was a repurchase that netted over $300,000. 

Earlier this week, District Court for the NMI Chief Judge Ramona V. Manglona granted the stipulation of Clear Management and Angel Playing Cards U.S.A. Inc., to repurchase shoes and decks confirming, and kickstarting, the sale of IPI’s assets to satisfy most, if not all, judgments currently active against them.

Pursuant to the stipulation, APC has agreed to repurchase all 201 Super Angel Eye dealing shoes in the custody and control of Clear Management at the unit price of $1,500 for a total of $301,500; and to repurchase all decks of Angel playing cards in Clear Management’s possession at the unit price of 10 cents per deck. 

At 10 cents a deck, the sale would be no more than $1.9 million as 1,935,360 decks were sold to IPI over time. However, Clear Management has yet to determine how many decks it holds in its possession. 

The sale has since been granted and confirmed. 

During the hearing, attorney Michael White, who represents Clear Management, requested that the court have the funds transferred and held in an escrow trust account, which Manglona granted with no objections. 

The payments shall be made and transferred to Law Offices of Michael A. White, LLC, Escrow Trust Account, as per the court’s amended order. 

According to the stipulation, APC previously sold a series of products to IPI, including the dealing shoes and playing cards that have since been repurchased. 

On Oct. 26, 2021, the federal court appointed Clear Management as limited receiver to take possession of and sell at auction IPI’s casino gaming equipment.

The casino property subject to sale by Clear Management included 201 units of Super Angel Eye automatic dealing shoes.

In a motion opposing the auction of APC products, APC said IPI acquired only the right to use Angel products and that, therefore, Clear Management cannot transfer title to APC products to purchasers at auction.

At a hearing on Nov. 29, 2021, the court stayed the auction of APC products for 30 days.

On Dec. 17, 2021, the court issued the first of a series of orders staying the receivership.

On April 14, 2022, the court denied APC’s motion without prejudice and with the understanding that if the stay was ever lifted, APC could refile the motion.

On Aug. 16, 2022, the court lifted the stay on the limited receivership.

After the lifting of the stay, APC and Clear Management negotiated for APC to repurchase the 201 dealing shoes at the unit price of $1,500 for a total of $301,500. The market price for purchasing new Super Angel Eye dealing shoes is $4,200 per unit.

It is the opinion of Clear Management that the market for the pre-owned dealing shoes is extremely limited, given their age and the adverse storage conditions to which the shoes have been exposed. In addition, no bids were received on the shoes before the initial auction was stayed.

Clear Management and APC agreed that the proposed repurchase price for the dealing shoes is reasonable and represents the maximum value that could be obtained for the pre-owned dealing shoes in the present market.

In 2016, IPI and APC entered into an agreement for IPI to purchase a total of 1,935,360 decks of playing cards over a period of time. The final purchase and shipment of decks occurred in January 2020. Clear Management has yet to determine the number of decks in inventory.

Because playing cards have a limited lifespan and are routinely destroyed or canceled when a casino takes them out of use, the inventory of decks is believed to be substantially less than $1.9 million.

APC and Clear Management have agreed that APC may repurchase any decks that are located at a price of $0.10 per deck.

It is the opinion of Clear Management that the market for pre-owned playing cards is almost nonexistent, as they cannot be used in a casino and can only be used, if anything, for training purposes.

Clear Management and APC agreed that the proposed repurchase price for the card decks is reasonable and represents more than the maximum value that could be obtained for them in the present market.