Imperial Pacific International (CNMI): $12.95M Sale and Liquidation Plan
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Imperial Pacific (CNMI) filed chapter 11 on Apr 19, 2024 and moved toward a liquidation plan after a $12.95M sale to Team King.
Imperial Pacific International (CNMI), LLC filed Chapter 11 on April 19, 2024 in the U.S. Bankruptcy Court for the Commonwealth of the Northern Mariana Islands. The debtor is the former operator of a Saipan casino that held an exclusive casino license granted in 2014 and built a large, still-incomplete resort complex. News coverage tied the filing to the company seeking protection days before a scheduled casino license revocation hearing, and noted that its Hong Kong-listed parent had already been ordered wound up in Hong Kong. News coverage tied the chapter 11 filing to a license revocation hearing and noted the parent company's winding up order.
Since the filing, the case has moved from a funding bridge to a sale-driven liquidation. The court approved a $12.95 million sale to Team King Investment (CNMI), LLC with an additional $2.5 million option fee tied to a possible new casino license, and the debtor and unsecured creditors committee filed a joint plan of liquidation in late 2025. The restructuring track now centers on disclosure statement approval, balloting procedures, and a pending hearing on an amended plan and disclosure statement set for March 5, 2026 (ChST). Coverage of the plan and solicitation steps can be found in the liquidation plan vote coverage, while the sale closing is described in the Team King closing report.
| Debtor | Imperial Pacific International (CNMI), LLC |
| Court | U.S. Bankruptcy Court for the Commonwealth of the Northern Mariana Islands |
| Case Number | 1:24-bk-00002 |
| Judge | Chief Judge Manglona |
| Petition Date | April 19, 2024 |
| Total Liabilities (petition) | More than $165.8 million |
| Operations Status | Casino operations shuttered March 2020 |
| License Status | Exclusive casino license granted in 2014; suspended in April 2021 |
| DIP Facility | Up to $1.4 million |
| Sale Price | $12.95 million (Team King) |
| Option Fee | $2.5 million if casino license option is exercised |
| Plan Filed | October 31, 2025 |
Sale-Led Liquidation and Plan Framework
The case has been structured around a sale process and a joint plan of liquidation rather than a reorganization. Court filings describe a business that ceased operations in March 2020, did not return to meaningful revenue, and pivoted toward a liquidation strategy with the support of the official committee of general unsecured creditors. The court authorized postpetition funding to keep the case functioning long enough to conduct the sale and plan process.
DIP financing and bridge liquidity. The debtor obtained a postpetition financing facility of up to $1.4 million from Loi Lam Sit at 10% simple interest, with a default rate of 2% above that. The facility matured at the earliest of an event of default, conversion or dismissal of the case, appointment of a trustee or examiner, the plan effective date, or December 31, 2024. The Final DIP Order also established a professional carve out of $950,000. These terms kept the case funded through the early part of the sale process and provided a runway for plan development.
Conversion pressure and estate protection. The Commonwealth of the Northern Mariana Islands filed a Motion to Convert to Chapter 7 in June 2024, arguing continued diminution of the estate, a lack of rehabilitation prospects, and concerns about insurance compliance. While that motion did not immediately end the Chapter 11 case, the conversion request is part of the record and shaped the urgency around a sale-based solution.
Sale process mechanics. The debtor and the committee jointly moved to sell substantially all assets under section 363 via a Sale Motion, and an auction was held in late February 2025. The court entered a Sale Order in May 2025 approving a sale to Team King Investment (CNMI), LLC. The $12.95 million purchase price was supplemented by an option that requires an additional $2.5 million payment if the buyer elects to acquire a new exclusive casino license for Saipan. News coverage later described the sale closing and the buyer's public plans in the Team King acquisition coverage.
Escrow and proceeds allocation. The sale order set a specific escrow waterfall. Court filings state that $5 million of the purchase price was earmarked for the CNMI Division of Revenue and Taxation (secured tax claim) and $1.5 million was earmarked for certain secured creditors (Gray, Dotts, and USA Fanter). The Disclosure Statement described remaining proceeds of approximately $6.44 million after expenses and these earmarks. The estate expects remaining proceeds to be distributed through the plan.
| Allocation | Amount | Notes |
|---|---|---|
| CNMI DRT (secured tax claim) | $5,000,000 | Escrowed from purchase price |
| Gray / Dotts / USA Fanter (secured creditors) | $1,500,000 | Aggregate escrow allocation |
| Remaining sale proceeds | ~$6.44 million | Estimated after expenses and earmarks |
Plan structure and class treatment. The Joint Plan of Liquidation filed October 31, 2025 creates a liquidating trust to administer remaining assets, resolve claims, and make distributions. Secured creditors tied to the escrow allocations are treated as unimpaired. Other secured claims are paid in full in cash unless a different agreement is reached, with disputed rights transferred to the liquidating trust. General unsecured claim treatment turns on the distribution of remaining proceeds and any recoveries from the liquidating trust.
| Class | Claim Type | Voting | Treatment Summary (high level) |
|---|---|---|---|
| Class 1 | Priority non-tax claims | Unimpaired | Paid in cash in full on or after the effective date |
| Class 2(A) | Secured DRT claim | Unimpaired | Satisfied in full (escrowed proceeds) |
| Class 2(B) | Gray / USA Fanter / Dotts secured | Unimpaired | Satisfied in full (escrowed proceeds) |
| Class 2(C) | Other secured claims | Impaired | Paid in full in cash unless otherwise agreed |
| Class 3(A) | CCC unsecured claim | Impaired | Pro rata from remaining proceeds and excluded assets |
| Class 3(B) | DRT unsecured claim | Impaired | 70% subordinated; 30% pro rata from remaining proceeds |
| Class 3(C) | Unsecured deficiency claims | Impaired | Pro rata from remaining proceeds |
| Class 4 | Interests | Impaired | Deemed to reject |
The plan also ties certain distributions to the casino license option payment. Court filings state that if Team King exercises the option to acquire an exclusive casino license, the Commonwealth Casino Commission (CCC) agrees to waive distributions and amend its claim to zero, while the subordinated portion of the CNMI DRT unsecured claim can receive a catch-up payment from the option fee. If the option is not exercised, the CCC claim participates pro rata in remaining proceeds and excluded assets. This structure makes the option fee a meaningful variable in expected recoveries for specific governmental claims.
Effective date and implementation mechanics. The plan defines the effective date as the first business day at least 14 days after the confirmation order is entered, unless the debtor and the committee jointly waive that waiting period. That timing matters for when cash distributions can begin and when the liquidating trust takes operational control of remaining assets.
Liquidating trust role. Under the plan, a liquidating trust will hold and administer the remaining estate assets, resolve claim objections, and pursue or defend causes of action that are transferred into the trust. Court filings highlight that disputes over other secured claims are expected to be handled through the trust structure rather than litigated inside the debtor entity.
Disclosure statement approval and solicitation. In November 2025, the debtor and committee filed a joint motion seeking approval of the disclosure statement, balloting procedures, and a schedule keyed to a future confirmation hearing. The proposed solicitation package included the disclosure statement, a confirmation hearing notice, and ballots for voting classes, with ballots to be returned to KCC dba Verita Global. The schedule proposed service of solicitation materials at least 42 days before the confirmation hearing, with voting and objection deadlines 14 days before the hearing and confirmation briefs due 7 days before the hearing.
Casino License and Development History
Imperial Pacific International (CNMI), LLC built its Saipan operation around a single exclusive casino license. The First Day Declaration indicates the license was granted in August 2014, with casino operations initially launching at a temporary site in 2014 and transitioning to a primary location in 2017. The hotel-casino complex that was intended to anchor the development remained incomplete at the time of the Chapter 11 filing. News coverage described an incomplete hotel-casino building.
The license carried long-term exclusivity and ambitious development expectations. A Marianas Business Journal report described the casino as operating under a 40-year exclusive license and framed the Team King purchase as a bid to revive tourism-driven development. That report also described Team King's intent to renovate the Imperial Pacific Resort in Garapan. The report described a 40-year exclusive license and Team King's renovation plan.
Court filings further note that the casino property sits primarily on land leased from the CNMI Department of Public Land, a detail that matters for any redevelopment or re-licensing effort because it ties the project's land rights to government approvals. The sale order approved a transfer of substantially all assets free and clear under section 363, but any future casino license for the buyer still depends on regulatory action outside the bankruptcy court.
Because the property sits on public land, redevelopment also depends on lease compliance and continued CNMI approvals. Court filings indicate that the land and license issues are intertwined, which is why the sale structure separates the asset transfer from the separate process to obtain a new exclusive license. In practice, the transaction splits value between a court-approved asset sale and a regulatory process that determines whether the site can return to full casino operations.
Shutdown, License Suspension, and Bankruptcy Trigger
The company shut down operations in March 2020 and did not return to meaningful revenue. Court filings describe the COVID-19 shutdown as the point at which the casino stopped operating, and they state that the debtor had no meaningful income after the closure. In April 2021, the Commonwealth Casino Commission suspended the license for nonpayment of fees and other asserted defaults. Negotiations about reinstatement did not lead to a resumption of casino operations.
The bankruptcy filing came in April 2024. Coverage of the filing emphasized that the petition was filed just days before a license revocation hearing, and that the parent company had already been ordered wound up in Hong Kong. Coverage highlighted the license revocation timing and the parent company's Hong Kong winding up order.
The petition schedules reported total liabilities exceeding $165.8 million, a figure that aligns with press reporting that the filing involved more than $150 million in creditor debt. Press coverage described the reported debt level. Court filings also noted steps to monetize assets before the petition, including a Rolls-Royce sale for $333,000 to pay debts.
Investigations, Labor Issues, and Public Scrutiny
Imperial Pacific International's Saipan project has long been the subject of scrutiny. A Newsweek report on the arrest of former majority shareholder Cui Lijie described allegations of illegal employment practices and safety violations tied to earlier investigations, as well as claims that millions of dollars were routed to local officials. The report described illegal employment allegations and claims of payments to local officials.
The same report stated that U.S. authorities investigated possible money laundering and other financial crimes and noted that three executives were indicted in 2020 for unlawful employment and transfers of more than $24 million to promote illegal activities. The same report referenced money laundering investigations and 2020 executive indictments.
In November 2025, Newsweek reported that Cui Lijie, a Chinese national and former majority shareholder of the parent company, was detained by ICE in Saipan on alleged immigration violations and held at the Department of Corrections in Susupe. A separate ICE detention report stated that Cui was held at the Department of Corrections in Susupe. These events provide context for the scrutiny surrounding the project.
Asset Sale Economics and Buyer Profile
The sale approved in May 2025 was a pivotal step in the case. Team King Investment (CNMI), LLC emerged as the buyer, and the sale closed in August 2025. The Marianas Business Journal reported that Team King closed the $12.95 million purchase on August 20, 2025 and positioned the deal as a pathway to revive tourism, while iGaming Business reported that the acquisition was expected to clear roughly $169 million in liabilities and that additional capital was still required to complete the project. Reports described the August 20 closing and the liability-clearing context.
Both outlets detailed the buyer group. Marianas Business Journal identified Howyo Chi, a former IPI director, as the deal's leader and noted that the primary funder was Hiroshi Kaneko of the Jaan Kyosei Group in Hong Kong. iGaming Business reported that Team King founder Jin Song is connected to the same funding group and that there were close ties between Team King principals and the prior ownership group. Marianas Business Journal described the Howyo Chi leadership and Hiroshi Kaneko funding, while iGaming Business noted close ties.
The acquisition was structured to give Team King a nine-month window to acquire an exclusive casino license, with a $2.5 million payment required if the option is exercised. The Marianas Business Journal reported that the buyer planned to renovate the Imperial Pacific Resort in Garapan, while iGaming Business estimated that another $150 million would be needed to complete construction. Reports cited a nine-month license window and an estimated $150 million completion cost.
The Sale Order also describes the sale as a free-and-clear transaction under section 363, with liens, claims, and interests attaching to net proceeds to the extent applicable. The order included a good-faith purchaser finding, which provides statutory protections against later challenges. Those findings are common in complex 363 sales but are especially important here because the estate expects to distribute sale proceeds under the plan, and creditor recoveries are tied to the integrity of the sale transaction.
Capital Structure and Creditor Landscape
Imperial Pacific entered Chapter 11 with a concentrated creditor base dominated by government claims and construction liabilities. The petition schedules reported total liabilities above $165.8 million, and press coverage described the filing as involving more than $150 million in creditor debt. Press coverage cited the reported debt level.
| Creditor | Amount | Nature |
|---|---|---|
| CNMI Treasury | $62 million | Casino license fees |
| MCC International | $34.9 million | Construction services |
| Commonwealth Casino Commission | $17.6 million | Licensing fees and penalties |
| Hughes Hubbard & Reed | $8.58 million | Legal fees |
| Century Estate Investment Ltd. | $8 million | Unpaid loan |
| IRS | $4 million | Taxes |
| DOJ - Civil Division | $1.46 million | Government claim |
| DOL - Wage and Hour Division | $0.95 million | Labor-related claim |
The size and mix of the claims pool matter for plan feasibility. Government-related claims and secured tax obligations are treated first in the distribution waterfall, while general unsecured recoveries depend on remaining proceeds, potential avoidance recoveries, and any proceeds from the casino license option fee if exercised.
Because the plan contemplates a liquidating trust, the claims register will likely remain active for an extended period. That has practical implications for how distributions are staged and when final recoveries can be calculated. The presence of large governmental claims also makes the plan more sensitive to tax and regulatory resolutions that sit outside the ordinary creditor negotiation framework.
Disclosure Statement Process and Current Status
The plan and disclosure statement were filed on October 31, 2025. In November 2025, the debtor and committee filed a Disclosure Statement Approval Motion to approve the disclosure statement and set solicitation procedures. The motion proposed a confirmation hearing roughly three months after the hearing on that motion and set out a detailed schedule for mailing solicitation packages, returning ballots, and filing objections and briefs. The Asia Gaming Brief reported that the plan was headed to a creditor vote and that solicitation packages would be distributed to eligible creditors. Asia Gaming Brief reported a creditor vote and balloting procedures.
Disclosure statement approval became contested. Joshua Gray filed an opposition arguing that the disclosure statement did not provide adequate information about the proposed liquidating trustee, the expected recovery pool for general unsecured creditors, remaining funds after professional and tax payments, and potential avoidance actions. He also joined the CNMI objection concerning the casino license.
Those objections are substantive rather than procedural. They focus on whether creditors can make an informed voting decision without clearer disclosure of the trustee role, a realistic estimate of remaining distributable funds, and the potential value of avoidance actions that might augment recoveries. The objections also underscore the regulatory weight of the casino license itself, which sits outside the bankruptcy estate's direct control and may influence both recoveries and future operations.
A hearing on the disclosure statement approval motion was held on January 22, 2026 before Designated Judge Robert J. Faris, and the court set a further hearing on an amended disclosure statement and plan for March 5, 2026 (ChST). Until those hearings conclude and a disclosure statement is approved, the plan cannot proceed to a formal solicitation and confirmation process.
| Date | Milestone |
|---|---|
| 2024-04-19 | Chapter 11 petition filed |
| 2024-07-18 | Final DIP order entered (up to $1.4 million) |
| 2025-02-26 | Auction held for sale of assets |
| 2025-05-01 | Sale order entered approving Team King transaction |
| 2025-08-20 | Team King closed the purchase |
| 2025-10-31 | Plan and disclosure statement filed |
| 2025-11-16 | Motion filed to approve disclosure statement and set solicitation deadlines |
| 2026-01-22 | Hearing held on disclosure statement approval motion |
| 2026-03-05 | Hearing scheduled on amended disclosure statement and plan |
Frequently Asked Questions
What is Imperial Pacific International (CNMI), LLC?
Imperial Pacific International (CNMI), LLC operated a casino in Saipan under an exclusive license granted in 2014, with operations moving from a temporary site to a primary resort location in 2017. The project was built around a large hotel-casino complex that remained incomplete at the time of the bankruptcy filing. The filing coverage noted the license grant context and the unfinished resort.
Why did the company file Chapter 11?
Court filings state that operations shut down in March 2020 due to COVID-19 and never generated meaningful revenue afterward, and the casino license was suspended in April 2021 for nonpayment of fees and other asserted defaults. The April 2024 filing came just days before a scheduled license revocation hearing. The filing timing was reported in contemporaneous coverage.
How much did Imperial Pacific owe creditors at filing?
The petition schedules reported total liabilities above $165.8 million, while contemporaneous press coverage described the filing as involving more than $150 million in creditor debt. Press coverage cited the reported debt level.
Who bought the casino assets?
Team King Investment (CNMI), LLC purchased substantially all assets for $12.95 million, with an additional $2.5 million option fee tied to a potential new casino license. The sale closed in August 2025. Reports described the Team King closing and the Team King acquisition.
What is Team King's plan for the property?
Team King has a nine-month window to acquire a new exclusive casino license and has described plans to renovate the Imperial Pacific Resort in Garapan, though outside reports estimate that another $150 million in capital may be required to complete construction. Reports cited the renovation plan and the completion cost estimate.
What is the status of the liquidation plan?
A joint plan of liquidation and disclosure statement were filed on October 31, 2025, and the debtor and committee moved to approve the disclosure statement and set solicitation deadlines. A hearing on the disclosure statement approval motion was held on January 22, 2026, and a hearing on an amended disclosure statement and plan is scheduled for March 5, 2026 (ChST). The plan cannot proceed to confirmation until the disclosure statement is approved.
What controversies surrounded the project?
A Newsweek report described allegations of illegal employment and safety violations, and referenced federal investigations into potential money laundering and other conduct, as well as indictments of three executives for unlawful employment and transfers of more than $24 million to promote illegal activities. A Newsweek report described illegal employment allegations and executive indictments.
Who is the claims agent for Imperial Pacific International (CNMI), LLC?
Kurtzman Carson Consultants, LLC dba Verita Global serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
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