Committee of Creditors Questions Identity of Lender Providing Loan to Imperial Pacific International

The embattled Saipan casino operator Imperial Pacific International (CNMI) LLC is facing further scrutiny from a committee of creditors claiming they are owed money. The committee has raised questions about the identity of an individual set to provide a $7 million loan to IPI and his connection to the company.

According to a report by the Saipan Tribune, the committee has filed a supplemental opposition to the final approval of a motion for order authorizing Debtor-in-possession (DIP) financing for the remaining $6.6 million of the loan that IPI says it has secured to help with its restructuring efforts.

The committee has expressed concerns about the need for the additional loan given IPI’s existing debts and has questioned the identity of the lender, Mr Loi Lam Sit of Hong Kong. The committee has called on the court to deny IPI’s loan request and require it to seek funding elsewhere.

Furthermore, the committee has accused IPI of falsely claiming it will use $6.15 million of the funds to settle amounts outstanding with the Commonwealth Casino Commission (CCC), despite no evidence that the regulator would agree to that amount.

The CCC had planned revocation hearings in relation to IPI’s casino license, which has been suspended since early 2021, but has been unable to proceed since the company filed for Chapter 11 bankruptcy in April.

The committee’s opposition raises serious questions about IPI’s financial dealings and the transparency of its restructuring efforts. The court will now have to consider these concerns before making a decision on the approval of the loan.