Will IPI Finally Sell Its Saipan Casino This Year?
The turbulent saga of Saipan casino operator Imperial Pacific International (IPI) may finally be approaching its conclusion. IPI has identified a potential buyer for its property, while a creditor is urging the bankruptcy court to consider a second bidder.
Imperial Palace Saipan
A new potential bidder from the US has emerged, according to Saipan-based Dotts Law Office. This unnamed party requires additional time to complete due diligence before making an offer on the resort.
Saipan’s Once Lavish Resort Now in Decline
Imperial Pacific Palace, a beachfront resort located in Garapan, Saipan—part of the US Commonwealth of the Northern Mariana Islands (CNMI)—is currently under federal bankruptcy court review.
The unfinished resort opened in 2016 but remained incomplete by March 2020, when it shut down due to the COVID-19 pandemic. Construction halted in 2021, IPI defaulted on millions in annual fees, and the Commonwealth Casino Commission (CCC) suspended its gaming license.
The property has not reopened since. According to IPI attorney Chuck Choi, it has been “open to the elements and is currently in poor condition.”
Who Is Loi Lam Sit?
Choi has requested court approval to sell the property to Hong Kong businessman Loi Lam Sit, who has been described in media reports as the general manager of a cosmetics distribution company. Lam offered a $7 million loan to help IPI settle its debts with the CCC. However, creditors pushed back, calling Lam an “obscure source.”
Creditors expressed concerns, stating that IPI “submitted a one-and-a-half page, woefully deficient declaration from the lender that neglects to address crucial concerns regarding his background, his relationship with the debtor and its insiders, and his motives for providing the loan.” Instead of providing clarity, the declaration raised more questions.
More Bidders Are Better
Dotts Law Office has urged the court to consider other investors, including the unnamed US entity. They have requested a detailed bid package containing inspection reports, construction estimates, and other key documents to assist prospective buyers in making informed offers.
Dotts argues that a “blind bidding procedure” would benefit IPI’s creditors. Spokesman Michael Dotts emphasized that IPI should receive the highest possible price from a buyer capable of completing construction and reopening the resort.
A Bidding War Ahead?
As recently as May, IPI maintained that it could still “make a resilient comeback in the dynamic gaming industry,” despite mounting evidence against it.
However, CNMI officials have argued that IPI’s bankruptcy case should be converted from Chapter 11 (reorganization) to Chapter 7 (liquidation), stating that the Hong Kong-based company “has no business to reorganize.” The US Trustee’s office agreed, citing IPI’s “alleged continuing losses, no likelihood of rehabilitation, and lack of insurance.”
If multiple bids are received, a bid committee will evaluate factors such as “the ability of the bidders to actually complete construction,” according to Dotts. This is a major undertaking, with completion costs estimated between $100 million and $150 million.
IPI currently owes creditors a total of $166 million.