Stay on IPI receivership denied

The U.S. District Court for the NMI has denied the stipulated stay requested by Imperial Pacific International (CNMI) LLC and its judgment creditors. Instead, the court has instructed court-appointed receiver Clear Management Ltd., to proceed with the auction of IPI’s gaming equipment, which is set to close today, Oct. 7. 

Following a status conference yesterday to discuss the recent motion to stay the receivership. District Court for the NMI Chief Judge Ramona V. Manglona denied the parties’ stipulation to stay the limited receivership. 

“The auction will go forward for the sale of defendant IPI’s remaining gaming equipment identified by the Court’s order,” said Manglona. 

During the hearing, attorney Michael White, Clear Management’s attorney, opposed the stipulated motion to stay the receivership. 

Meanwhile, IPI’s judgment creditors informed the court that they would soon be filing notices of satisfaction of judgments. 

Despite this, IPI’s creditors informed the court of their intent to file notice of satisfaction of judgment proving IPI has indeed no outstanding judgments against them. However, the court still ruled against the motion to stay. 

Manglona also requested an inquiry regarding a list of potential creditors that Tim Shepherd, the receiver, is aware of. 

IPI was requested to also produce a list of creditors. 

Following the order denying the stay, IPI’s attorney Samuel Slayer requested a stay on the court’s decision to deny the stay of the receivership.

Slayer reported to the court that defendant IPI is working on fulfilling judgments owed to creditors and requested the limited receivership be stayed. 

However, this verbal motion was also denied. 

The court will issue an official order on the motion later. 

According to court documents, last Wednesday, the parties who have assumed the role of U.S.A Fanter Corp. Ltd., in the receivership currently active against IPI agreed on a stay on the limited receivership following payments made by IPI to resolve outstanding judgments against them.

The motion noted that on Oct. 4, IPI and the plaintiffs in Wang et al. v. Gold Mantis Construction Decoration (CNMI) LLC, executed a settlement agreement that fully and finally resolved the over $5 million claim against IPI. 

“IPI made full payment of the amount due pursuant to this settlement agreement to the Wang plaintiffs and to a designated escrow agent on Oct. 4, 2022,” the stipulated motion states. 

Meanwhile, on Oct. 3, IPI and the plaintiffs in Genc et al. v. Imperial Pacific International (CNMI), LLC, reached an agreement for a compromise settlement of the Fair Labor Standards Act judgment in the amount of $477,935.91.

IPI made the full payment pursuant to this agreement on Oct. 5.

Lastly, on Oct. 3, IPI and N15 Architecture reached an agreement to fully and finally resolve N15’s judgment of $149,195.50 against IPI. 

“IPI made full payment of the amount due pursuant to this agreement on Oct. 4, 2022. N15 filed an acknowledgement of satisfaction of judgment and motion for withdrawal from Limited Receivership on Oct. 5,” the motion states.