Imperial Pacific International’s insolvency reached its final chapter last week after a federal judge approved a structured dismissal of the Chapter 11 case, clearing the way for distributions to creditors.
U.S. Bankruptcy Judge Robert J. Faris granted the joint motion filed by IPI and the Official Committee of General Unsecured Creditors, authorizing the debtor to distribute remaining estate funds and dismiss the case once all payments are completed. The order also rejects IPI’s casino license, terminates the retention of all professionals, and preserves all prior rulings—including the casino sale order—for purposes of finality.
Under the dismissal procedures, IPI must first pay outstanding quarterly U.S. trustee fees and administrative expenses, followed by the Internal Revenue Service, and then general unsecured creditors. The judge also approved a clause shielding the debtor, the committee, and their professionals from lawsuits over actions taken during the Chapter 11 process, excluding willful misconduct, gross negligence, fraud or criminal acts.
IPI entered bankruptcy in February 2024 amid mounting regulatory penalties, unpaid contractors, and litigation from former workers tied to the shuttered Garapan casino. Court filings list $141.65 million in allowed liabilities, including multimillion‑dollar claims from MCC International Saipan Ltd. Co., the Commonwealth Casino Commission, the CNMI Treasury, Fujitec Pacific Inc., and hundreds of former employees.
With the dismissal granted, the case now moves into its final administrative phase, marking the end of one of the largest insolvencies in CNMI history.
