Staying alive is a definite goal for companies and Imperial Pacific International (IPI) is certainly among them.
It has always wanted to develop Saipan’s Imperial Palace into a worldwide, internationally-recognized resort, but it has failed.
Allegations are running rampant for all kinds of inequities in the realm of embezzlement, bribery, unsafe work conditions, and even slave labor.
IPI is about to slip off the edge and has shuttered the Imperial Palace during the pandemic. It needs some financing fast. In this regard, it has signed a MOU, or memorandum of understanding with Zhongfeng International Investment Holdings Group Co. Limited.
It will be funded by issuing convertible bonds. Zhongfeng is now considered a “strategic partner” of the embattled casino operator. The deal should be forthcoming in a few months or it will be nullified.
Reportedly, IPI seeks $6.5 million at this time, but why? It is far less than needed to meet its debt. In fact, the Commonwealth Casino Commission is looking for $37 million due a community benefit fund and construction companies want $7.6 million.
To make matters worse, the Commonwealth Utilities Corp. wants the money it is owed for outstanding power bills. It has shut off power due to nonpayment.
Can the Imperial Palace squeak by? Clearly it needs a strategy to recover economically. Few are confident about this prospect. IPI has not lived up to its financial responsibilities to date.
At this point it will take a secret formula that miraculously turns a mere $6.5 million into a cascade of free-flowing cash.