IMPERIAL Pacific International Holdings announced that it has signed an agreement with independent companies to complete the construction of IPI’s casino hotel in Garapan, rent 250 hotel rooms and 15 villas and operate a shopping mall.
The announcement was made on June 23, 2022 by Xu Zhongxiang, Executive Director of IPI Holdings.
In its “Annual Results as of December 31, 2021,” IPI Holdings, the parent company of IPI CNMI LLC, listed its “efforts” to address any concerns raised by the company’s auditors, who reported “net losses of HK$1,077,617.” [US$137,000] for the year ended 31 December 2021, net current debt of HK$12,179,909 [US$1.55 million]Net debt of HK$8,304,207 [US$1.05 million] and capital commitments of approximately HK$509,000,000 [US$64.8 million] as of December 31, 2021.”
IPI Holdings said its board “will use its best efforts to take practicable and feasible actions to resolve the issue.”
According to IPI Holdings, IPI Holdings “has received an indicative offer of a US$100,000,000 (equivalent to HK$777,000,000) credit facility from an independent financial institution, valid until September 27, 2023. As of the date of this announcement, it has not been claimed.”
IPI Holdings and its subsidiaries, IPI CNMI LLC and Best Sunshine, have also “entered into a construction contract with an independent contractor that has committed to fund and complete the remaining structures of the IPI Casino Hotel in Garapan.”
IPI Holdings announced on March 30, 2022 that it had entered into a placement agreement with CNI Securities Group Limited, an independent third-party placement agent, “under which the Placement Agent has agreed to act on a best-efforts sole placement basis to independent agents to arrange for the subscription of bonds up to an aggregate principal amount of HK$800,000,000 [US$101.9 million] at a coupon of 6% per year.”
IPI Holdings stated that “Inventive Star and other related parties will provide additional funds to settle IPI CNMI LLC’s operations, liabilities, potential litigation-related liabilities, annual casino license fee and charitable fund, and capital investments as needed. The Company’s management will consider other financing arrangements to increase IPI’s capitalization/equity and will continue to refinance and/or roll over its existing debt to improve its liquidity.”
IPI also has an exclusive cooperation agreement with Fujian Jiadingsheng Supply Chain Management Co.Ltd. completed “to form a joint venture having the exclusive right to operate a 1,000 square meter shopping center at IPI for a period of four years beginning on October 20. Jiadingsheng has committed that the mall will generate minimum annual sales and net profit of HK$300 million [US$38.2 million] and HK$20 [US$2.54 million] each during the term of the agreement and IPI and Jiadingsheng are entitled to share 51% and 49% of the net profit, respectively.”
In addition, IPI and Sino Travel Samoa Limited have entered into an acquisition agreement whereby Sino Travel has agreed to lease 250 hotel rooms and 15 villas at IPI for a four-year term, after IPI has obtained all necessary licenses and permits from the CNMI Government.
“The operation of the casino portion of the Imperial Palace‧Saipan has been suspended since March 17, 2020 to contain the spread of the Covid-19 and subsequently the developer license for the casino resort was temporarily suspended [the Commonwealth Casino Commission] on April 23, 2021 pending payment of certain outstanding fees related to the license,” said IPI Holdings.
Ramon M. Dela Cruz, Commonwealth Casino Commissioner, said in an interview on Friday that he was hopeful about “the ongoing negotiations.”
He noted that the Commission’s funds “will be exhausted by September 30” and all 11 remaining staff, including Commission Executive Director Andrew Yeom, must be furloughed.
The commission is funded by the regulatory fees paid by the IPI.
“It’s very difficult,” Dela Cruz said. “We have asked Governor Ralph DLG Torres for an appropriation and are still awaiting his response.”
Dela Cruz said the IPI’s obligations to the Commonwealth totaled approximately $57 million, including fees owed to the commission for three consecutive years.