Imperial Pacific International Holdings Limited, the Hong Kong-listed parent company of troubled Saipan casino operator Imperial Pacific International (CNMI) LLC, said it is “considering its options and seeking professional advice” after receiving two winding-up petitions for alleged failure to pay judgement amounts.
According to a Wednesday filing, IPI received a winding-up petition on 14 September from Mr Guan Chubin, filed with the High Court of the Hong Kong SAR, on the basis of the alleged failure by the company to settle the judgment amount of HK$20.8 million (US$2.66 million) plus interest and costs, with a hearing scheduled to be heard on 22 November 2023.
A second winding up petition was received on 3 October 2023, filed by Ms Wang Yi, for alleged failure to settle the judgment amount of HK$5.3 million (US$677,700) plus interest and costs, with a hearing scheduled to be heard on 6 December 2023.
IPI did not specify exactly what the judgement amounts referred to, adding that the petitions have only been filed as application for the winding-up of the company and no winding-up order has been granted.
Nevertheless, it issued a warning to shareholders that, should the winding-up orders be granted, “any disposition of the property of the company, including things in action, and any transfer of shares of the company, or alteration in the status of the members of the company, made after the commencement of the winding up, shall, unless the court otherwise orders, be void.”
IPI added that its Board of Directors, which saw two members step down earlier this week, is “currently assessing the impact of the petitions on the business operations and financial position of the Group.”
The petitions come with IPI facing a revocation hearing with the Commonwealth Casino Commission (CCC) of the CNMI before the end of the year, with the regulator looking to revoke the company’s casino license for failure to comply with certain requirements under its license agreement.
The CCC first filed five complaints against IPI in 2021 for failure to comply with certain requirements under its license agreement.
Those five complaints specifically related to IPI’s failure to pay its annual US$15.5 million license fee in August 2020, failure to pay its annual US$3.1 million regulatory fee in October 2020, failure to contribute US$20 million to the community benefit fund in both 2018 and 2019, failure to comply with its minimum US$2 billion capital requirement and failure to comply with a CCC order to pay all money owing to its vendors.
While IPI’s license has been suspended since April 2021, the company has been actively working to prevent full revocation – arguing that its failure to pay mandated fees was a result of force majeure. IPI’s casino, Imperial Palace • Saipan, was closed in March 2020 due to the COVID-19 pandemic.
IPI has touted its desire to reopen the casino should it find outside investment, but the company hasn’t been able to prevent the sale of its gaming equipment which has seen more than US$1 million raised to pay back contractors via a series of online auctions.
RelatedPosts
