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06/16/2025—A U.S. bankruptcy judge could dismiss Imperial Pacific International’s Chapter 11 case unless the casino developer or its potential buyer, Team King Investment, renews critical liability insurance coverage on its unfinished Garapan casino property.
At a tense status hearing last June 13, CNMI designated bankruptcy judge Robert J. Faris gave both parties two weeks—until June 27—to resolve the lapse, warning that the entire bankruptcy case may be dismissed if no general liability insurance is secured.
“This can’t go on,” Faris said. “We’re either going to get this done, or move on to the next thing—however bad the next thing turns out to be,” he said during the status hearing at the U.S. District Court of the NMI in Gualo Rai.
IPI’s $12.95-million asset sale to Team King Investment was previously hailed as a lifeline for the embattled casino developer, which holds an exclusive but now-suspended gaming license on Saipan. However, the sale has been delayed by unresolved issues with the Department of Public Lands over lease transfers and financial transparency concerns surrounding the buyer.
Faris described IPI as an “empty shell” and suggested a Chapter 7 conversion—where assets are liquidated by a court-appointed trustee—may soon be inevitable.
“Neither option is palatable,” he said. “But I can’t let this linger.”
IPI’s general liability insurance expired on May 10, leaving the half-completed Imperial Pacific Resort unprotected.
IPI attorney Chuck Choi acknowledged the lapse but requested 10 days to locate the $17,000 required to renew the policy. Team King’s attorney Louie Yanza said his client is willing to close the sale and will discuss whether they can front the insurance cost, but noted ongoing delays with DPL are also complicating the transaction.
CNMI solicitor general Robert Glass, appearing for the Office of the Attorney General, said the lease cannot be transferred until Team King submits proper financial disclosures and translations of supporting documents. He warned that absent these, DPL could reclaim the property entirely.
Local creditors are growing increasingly frustrated. Vince Seman, representing Saipan Stevedore, said his client is storing 28 containers and equipment worth over $2 million, incurring more than $250,000 in unpaid fees. Meanwhile, security contractors assigned to guard the site have reportedly gone unpaid for a month.
Attorney N. Verbrugge noted that IPI’s latest monthly report showed it had little more than $100,000 in cash. “The debtor is administratively insolvent,” he said.
Despite the challenges, stakeholders say they remain hopeful. Choi said he was “cautiously optimistic” that the escrow will be funded and the sale finalized within weeks. “All parties want to see the deal close,” he said.
Still, Faris made it clear the clock is ticking. He plans to issue an Order to Show Cause, compelling parties to explain why the case should not be dismissed or converted to Chapter 7.
“We look forward to resolution, hopefully for everyone's benefit; otherwise, without it, it would be, as the judge described, with catastrophic consequences," Robert Torres, counsel for MCC International, said in an interview after the hearing.
The next hearing is set for 9am on June 27. If no insurance policy is presented by then, Faris said, the court will likely terminate the case.
Story by Mark Rabago
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