Imperial Pacific International lawyer Michael Dotts has advised the federal court that putting the firm’s local assets into receivership could lead to a “full liquidation.”
Because IPI is facing multiple lawsuits and other liabilities that could result in about US$11.2 million in claims, Dotts said that the court-ordered receivership “could also develop into the full liquidation of the company to satisfy other judgments or provide the framework for a liquidation process.”
The receivership is related to the fact that District Court for the NMI Chief Judge Ramona Manglona has found IPI its Chairwoman Cui Li Jie in contempt of court for violating the consent judgment with the US Department of Labor, and for not paying their current employees. The balance of the consent judgment is almost US$1.2 million; and the judge has also ordered the firm to create an escrow account to cover the future payroll of employees in the amount of US$800,000.
IPI lawyer Dotts, however, says that the receiver may be required to sell assets totaling nearly US$11.2 million to resolve the contempt ruling, including US$9.4 million in tax liability.
Meanwhile, the need for an escrow account to ensure worker payments has again been demonstrated by the fact that IPI has again fallen into arrears, having a shortfall of nearly US$14,000 in its payments to employees for the February 26 payroll.
House Committee on Gaming Chair Edwin K. Propst (D-Saipan) has also pointed out that once again that former IPI workers who returned to the home countries are still awaiting the payments of back salaries, in spite of repeated promises that they would be paid.