Imperial Pacific International, which operated a casino resort in Saipan, an island in the Commonwealth of the Northern Mariana Islands, has completed its Chapter 11 bankruptcy process following a federal judge’s approval of a structured dismissal. The company filed for bankruptcy protection in April 2024 with debts of $141.6 million owed to multiple creditors, including the Commonwealth Casino Commission, CNMI Treasury, main contractor MCC International, former employees, and various contractors and suppliers.
U.S. Bankruptcy Judge Robert J. Faris granted the joint motion filed by IPI and the Official Committee of General Unsecured Creditors, authorizing the distribution of remaining estate funds and dismissal of the case once payments are completed. The order rejected IPI’s casino license, terminated the retention of all professionals, and preserved prior rulings including the casino sale order. The dismissal included conditions requiring IPI to first pay outstanding quarterly U.S. trustee fees and administrative expenses, followed by Internal Revenue Service obligations, and then general unsecured creditors.
The judge also approved protections shielding the debtor, committee, and professionals from lawsuits over actions taken during the Chapter 11 process, excluding willful misconduct, gross negligence, fraud, or criminal acts. The case now enters its final administrative phase. IPI’s struggles illustrate broader challenges facing casino operators nationwide, as increased competition from new gambling facilities in various markets has created a more difficult operating environment. The company never completed full construction of its Imperial Palace resort, and the property failed to attract sufficient customers to support its operational costs.
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