A Receiver Appointed by the US Labor Department to Settle IPI’s Payment

The acknowledgment has already been made by Imperial Pacific International (IPI) on its lack of financial resources to pay all its debt. The company still owes several millions of dollars to different private and government institutions and also to current and former workers. Lenders have already threatened IPI with receivership in case of its failure to take responsibilities with more sincerity. While the Imperial Palace Casino is restlessly attracting troubles on its course, a receiver has got nominated if IPI decides to sell any part of its property or assets to meet the court’s orders.

According to a report by Mariana’s Variety, the US labor department wants Joyce Tang, a Commonwealth of Northern Mariana Islands (CNMI) Settlement Fund Trustee, as the receiver of IPI. The labor department has made their selection on the reliever at a time when IPI has little time to pay all its workers their stipulated salaries.

Recently the company sourced out some money and paid a part of the workers, but it still has many others to pay to. The original court order covered all the wages, a consent judgment balance of $1.18 million, and also an $800,000 worth of escrow account holding. The court has also set March 1 as the deadline for IPI to meet all that is demanded.

The Court Determines Receiver’s Focus

The court will also bound Tang’s oversight to just the aspects and money required to cover the overall debt of DOL. Tang has already been ensured that her compensation will come from IPI assets. The secretary of the USDOL believes that it would be best to limit the receivership only to liquidate enough assets to provide the ordered payment of $1.18 million and $800,000 deposit into an escrow account as a security for the future payroll.

The US DOL got involved in the labor activity in IPI several years ago. However, the department came to know about the contempt the company was in due to its negligence towards its responsibility not so early. The department found out about the contempt when the chief or CNMI, Judge Ramona V. Manglona, held the IPI liable to make hundreds of people live below the standard by not paying their due payment.