Federal court approves bidding process for Imperial Pacific International’s $10M asset sale

Rajashree Seal January 14, 2025

SiGMA news

The federal court overseeing the bankruptcy case of Saipan casino operator (IPI) has approved the bidding procedure for the sale of the company’s assets, confirming the minimum bid at $10 million in cash for all IPI assets. This ruling also affirms a committee of unsecured IPI creditors to manage the bidding process, select a stalking horse bidder and schedule an auction and sale hearing.

Judge Robert Faris, quoted by the Marianas Variety, clarified, “The Bidding Procedures shall govern the selection of the Stalking Horse Bidder, bids and proceedings related to the Auction and the sale of the Assets.”

The debtor initially chooses a stalking horse bidder to set a baseline price for the assets in an auction, helping to attract other bidders. The auction will involve IPI’s assets but not its casino licence, with the final sale subject to competitive bidding and court approval. IPI and the creditors’ committee will also propose a break-up fee for the stalking horse bidder.

Judge Faris also stated that the Sale Notice had been approved.

“The Sale Notice is approved, and no other or further notice of the proposed sale of the Assets, the Auction, the Sale Hearing, or the Sale Objection Deadline shall be required if [IPI] or the Committee serves and publishes the Sale Notice in the manner provided in the Bidding Procedures and this Order.”

The auction will begin with bids due by February 21, 2025, and the sale hearing is scheduled for March 25, 2025. Qualified bids must meet specific requirements, such as disclosing the identities of the bidders, their connections to IPI or other bidders, and details of the assets and liabilities involved.

The court also approved the stipulation for IPI and the creditors’ committee to proceed with the bidding process, including taking any necessary actions to implement the procedure according to the timeline.

IPI had filed for Chapter 11 bankruptcy on April 19, 2024, citing over $165.8 million in debts. The company had operated a casino on Saipan until it closed in March 2020 due to the Covid-19 pandemic. Chapter 11 bankruptcy enables companies to restructure their debts and continue operations.

Earlier last year, IPI had declared Chapter 11 bankruptcy, citing over $165.8 million in debts. IPI operated a casino on Saipan for four years until the Covid-19 pandemic forced its closure in March 2020. Chapter 11 bankruptcy allows companies to restructure its debts and continue operating.

The court had previously rejected IPI’s planned asset sale procedures, while allowing the creditors’ committee to retain to sell the properties for a higher sale price.

Be Part of the Action! Join the world’s biggest iGaming community with SiGMA’s Top 10 News countdown. Subscribe for weekly updates, insider insights, and exclusive subscriber-only offers.