A series of proposed amendments to its CNMI Casino License Agreement put forward by Hong Kong-listed Imperial Pacific International (IPI) would include permission to sell its hotel assets at embattled Saipan IR, Imperial Palace‧Saipan.
CNMI Lottery Commission Chairman Mark Rabauliman revealed the contents of IPI’s proposal on Monday, which also include a 50% cut to the company’s annual US$15 million license fee, lower contributions to a community benefit fund and permission to find new investors.
“For the avoidance of doubt, the licensee is not in any way restricted or prohibited from inviting investor(s) and/or partner(s) or a management company or companies to participate in any of the construction, operation or in acquisition of ownership of any structure in any part of the initial gaming facility and/or the integrated resort,” IPI’s proposal states, as reported by Marianas Variety.
“As an example, should the licensee want to separate the hotel from casino operation and sell the hotel portion to another company of its choice, the licensee may do so.”
IPI’s financial woes have increasingly come under the microscope in recent months following a US Federal Court order to pay US$5.6 million to its former contractor, Pacific Rim Land Development LLC, for breaching a promissory note.
As reported by Inside Asian Gaming, IPI recently warned that it may have to permanently close its Saipan casino pending enforcement of the Pacific Rim ruling which IPI said at the time it was unable to pay.
The Commonwealth Casino Commission (CCC) also threatened to suspend the company’s casino license due to its failure to pay US$37 million into the community benefit fund as per its Casino License Agreement.
In May, the Commonwealth Utilities Corp cut off power to both Imperial Palace‧Saipan and the company’s head office for failure to pay its bills.
IPI last week announced former SVP for Security and Surveillance Donald Browne as its new CEO following the departure of Mark Brown in December. The company had been ordered by the CCC late last month to appoint a new CEO within 15 days.