Imperial Pacific International (IPI), the troubled casino operator in the Northern Mariana Islands, has filed for bankruptcy just one day before a crucial hearing that could result in the revocation of its casino license.
The move comes as no surprise to industry insiders, as IPI has been mired in financial and legal troubles for months. The company’s main project, the Imperial Palace Resort in Saipan, has faced numerous delays and cost overruns, leading to mounting debts and a trail of disgruntled creditors.
The bankruptcy filing, made in U.S. District Court in Nevada, lists liabilities of over $50 million. The company has also been hit with multiple lawsuits from former employees who allege labor violations and unpaid wages. Moreover, IPI owes millions of dollars in back taxes to the local government.
The timing of the bankruptcy filing is significant, as it comes just ahead of a scheduled hearing by the Commonwealth Casino Commission to determine whether IPI is fit to hold a casino license. The revocation of the license would deal a severe blow to the company’s ability to continue operating in the region.
IPI’s troubles have not gone unnoticed by regulators and law enforcement agencies. The U.S. Department of Homeland Security recently raided the company’s offices in Saipan as part of an investigation into allegations of money laundering and other illicit activities. The company has denied any wrongdoing and has vowed to cooperate with authorities.
In a statement, IPI blamed its financial woes on the impact of the Covid-19 pandemic, which has severely curtailed travel and tourism in the region. The company also cited escalating construction costs and delays in completing the resort project as contributing factors to its bankruptcy filing.
The news of IPI’s bankruptcy has sent shockwaves through the local community, where the company has been a major employer and economic driver. Many are worried about the potential fallout from the company’s collapse, including the loss of jobs and tax revenue.
As the bankruptcy proceedings unfold, all eyes will be on the Commonwealth Casino Commission as it decides the fate of IPI’s casino license. The stakes are high, and the decision could have far-reaching implications for the future of the gaming industry in the Northern Mariana Islands. Only time will tell what lies ahead for Imperial Pacific International.
