Imperial Pacific International holdings limited, which is located in the Commonwealth of the Northern Mariana Islands, has been ordered to pay off its debt. The company has also been informed that it will face a receivership otherwise.
According to an Inside Asian Gaming report, Imperial Pacific is working on the Imperial Palace Saipan, an under-construction facility in the American territory. However, the company is undergoing a financial collapse for the lack of overseas gamblers because of the advent of the coronavirus pandemic.
Inside Asian Gaming report also detailed that the casino has also lost its license for its inability to comply with numerous financial obligations. One of such obligations was to a former contractor Pacific Rim Land Development which is described to be worth $6.8 million.
Unrealistic Drought
Imperial Pacific International Holdings Limited introduced the casino within its Saipan facility worth $650 million in 2017 July. But the company is ever struggling to make a 500-room hotel adjacent to the casino. The entire project came to a stop due to the financial struggle of the company after being forced after its lockdown in March to limit pandemic transmission.
Serious Sanction
To worsen the matter for the casino, United States District Court for the associated region has now instituted the Friday afternoon as a deadline. Before that, the court chose a local lawyer named Joyce Tang and set him the formal receiver of the debt. He will also be in charge of liquidating all the local assets of the firm if it fails to pay off its debt. All this settlement came out after the US federal court holds Imperial Pacific and its chairperson Cui Li Jie guilty for violating an earlier agreement concerning its inability to pay due to wages to its employees.
Escalating Obligations
Imperial Pacific is about to face a $1.2 million judgment, in addition to paying $800,000 escrow money by Friday to cover all the future wages of its employees. This was all imposed on the company after the Commonwealth Casino Commission sanctioned the casino operator for transgressing five of its license conditions which could amount to an extra commitment topping around $58 million.
