Imperial Pacific Sues Clients to Recover Debts

Imperial Pacific International has filed 13 more lawsuits in an effort to recover US$12.75 million in debts from Hong Kong and Chinese players in its Saipan casino, local media reports.

The customers allegedly owe a total of US$19.1 million. According to documents filed last week before the Superior Court, the 13 customers took out loans ranging from US$100,000 to US$6.2 million, the Saipan Tribune reports.

The alleged biggest borrower is Wenlong Cui, a resident of Hong Kong, who allegedly took out two loans for a total of US$6.2 million and failed to pay back US$3,096,970. The newspaper cites the company’s legal counsel, Catherine Cachero, as saying that Cui took out a promissory note for US$1 million in October last year and subsequently asked for the amount to be doubled. She said Cui defaulted in payment of the first loan and that the amount due is US$800,000.

On a second trip in November of that year, Cui executed a second promissory note to borrow US$2.2 million.

Imperial Pacific, which has yet to complete the construction of its IR on the island, has been hit by rising debts as most of its business comes through direct marketing rather than through junkets.

The company reported an almost three-fold rise in gross revenue for 2017 to HK$13.2 billion (about US$1.7 billion), although net profit fell by almost a third to HK$637.5 million (about US$82.9 million) due to rising debts.

The company had VIP gambling debts of HK$8.5 billion (about US$1.1 billion), up from HK$5.3 billion (about US$689 million) in 2016. Impairment losses came in at HK$4.75 billion (about US$618 million), a nearly nine-fold increase on the HK$547 million (about US$71 million) the company booked in 2016. (AGB)