Imperial Pacific scrambles to keep control of Imperial Palace

It has been just over two weeks since Imperial Pacific International (IPI), the controversial casino operator behind the Imperial Palace in Saipan, was given two weeks to settle all its outstanding debt with the government of the Commonwealth of the Northern Mariana Islands (CNMI), as well as with its business partners. The “or else” demand had a threat of a license revocation attached to it, but it doesn’t appear that IPI has been ordered to get out of town. It has, however, pleaded its case and said that it can cover the tens of millions of dollars it owes, but will need more time to come up with the cash.

IPI told a district court judge this week that it can pay the sanctions levied by the courts and the Commonwealth Casino Commission (CCC), and company lawyer Michael Dotts has asked the judge to delay the process that could yank the license. He asserted, “I am also advised that IPI’s parent company has successfully raised funds and that it is only a matter of time before IPI has the ability to come current on all sanctions. I have not been told how much time.”

However, the judge, Chief Judge Ramona V. Manglona, replied that it isn’t up to the courts to make the decision on whether or not to revoke the license. That lies squarely with the CCC, which could still take action against IPI for not complying with its order. The issues, though, don’t stop there.

IPI was on the hook for $5.65 million to a contractor, Pacific Rim Land Development, who had done work on the Imperial Palace. However, IPI tried to back out of paying its bills, arguing that the amount requested was more than it should have to pay. This led to a separate lawsuit against the company that has now run its course. IPI had been given ample time to respond to the lawsuit but decided it didn’t need to waste its time. A writ that was issued last month to seize funds to pay Pacific Rim never received a response from IPI, so Manglona has given permission for the US Marshals to hand over $1.38 million from money seized from an IPI account at the Bank of Saipan.