Former Imperial Pacific International contractor Pacific Rim Land Development, LLC has filed a request for an order that would allow it to sell the troubled casino operator’s slot machines and vehicles to fund a US$5.6 million court ordered debt.
According to a report by Marianas Variety, IPI is opposing the order, stating it would cause the company “irreparable harm” and has instead asked the federal court to allow one of its investors, Pacific International Property Management LLC, to deposit almost US$6 million in a CNMI bank.
The Federal Court ordered IPI to pay US$5.6 million to its former contractor in April for breaching a promissory note after Pacific Rim had sued the company for its failure to pay for services provided at the site of IPI’s Imperial Palace‧Saipan. IPI is still appealing that order, claiming that Pacific Rim had overstated the cost of completing the works.
However, the company says its investor is willing to deposit US$6 million, enough to cover its debt, into a secure bank account which would then be used to either pay Pacific Rim or returned to the investor, pending the outcome of the appeal
Pacific Rim is instead looking to recoup the debt by selling off IPI assets, specifically its slot machines and vehicles. IPI says such sales would place an unnecessary burden on the company.
“The gaming equipment is carried on IPI’s audited books at a value of more than US$20 million, but the best estimate is that will sell for US$2 million,” said IPI attorney Michael Dotts.
“No one but IPI can legally own it on Saipan so it will all need to be sent away. To reopen, IPI will have to purchase all of its gaming equipment again.”
Dotts also said IPI would likely only recoup around 25% of the original US$6 million cost of company vehicles which are used to transport staff
“When IPI reopens many of the vehicles that Pacific Rim seeks to have auctioned off will need to be replaced, and this could be difficult for IPI both financially and logistically,” he said.