Former CCC chair seeks OAG update on IPI bankruptcy payout

Former Commonwealth Casino Commission chair Edward C. Deleon Guerrero is asking the Office of the Attorney General for an update on the status of the commission's expected pro rata distribution from the bankruptcy estate of Imperial Pacific International (CNMI) LLC, saying the information could have a direct bearing on outstanding obligations tied to the now-defunct regulatory agency.

In a July 29 letter addressed to Attorney General Edward E. Manibusan, Deleon Guerrero, writing on behalf of the former CCC commissioners, requested an update regarding the status of the commission's claims as an unsecured creditor in IPI's Chapter 11 bankruptcy proceedings.

According to the letter, the CCC timely asserted claims totaling approximately $17.625 million for unpaid annual regulatory fees, administrative fines and amounts due under a previously executed stipulated settlement agreement.

Deleon Guerrero said the former commissioners had previously been advised by the OAG, acting as legal counsel for the CCC, that the commission would either receive a pro rata distribution from the bankruptcy estate as an unsecured creditor or receive payment if a purchaser of IPI's assets cured those obligations as part of the transfer of the exclusive casino license.

The letter states that more than a year has passed since the bankruptcy proceedings concluded. It notes that the Bankruptcy Court approved the sale of IPI's assets to Team King Investment Holding Ltd. and provided the purchaser nine months to obtain the transfer of the exclusive casino license, after which the transfer rights would be deemed rejected if the transaction was not completed.

Deleon Guerrero further wrote that the former commissioners had learned Team King had "reportedly" notified the governor in writing that it would not pursue the transfer of the exclusive casino license.

"If that information is accurate, it appears that the CCC's remaining avenue for recovery is through its pro rata distribution from the bankruptcy estate."

Citing a published report that the Bankruptcy Court had scheduled an Aug. 4 hearing to address the final administration of the bankruptcy estate and approve the distribution of remaining assets, Deleon Guerrero requested an update on the current status of the CCC's unsecured claims, the estimated amount, if any, the commission is expected to receive through a pro rata distribution, the anticipated timeline for any distribution, and any additional actions the Commonwealth or former commissioners should expect.

The letter states that the requested information is significant because substantial obligations remain unpaid as a direct consequence of IPI's failure to satisfy its regulatory obligations.

According to the letter, Deleon Guerrero said the Commonwealth government remains indebted to former CCC commissioners in the approximate amount of $650,000 for compensation earned from 2023 through July 2025. The letter also states that Springs Development Inc. is owed more than $330,000 in office lease payments for the commission's former Gualo Rai headquarters from April 2023 through Dec. 31, 2025, while approximately $12,550 remains unpaid to eight former CCC employees who did not receive their final wages following the cessation of CCC operations.

While acknowledging those obligations are separate from the bankruptcy proceedings, DeLeon Guerrero wrote that any recovery received by the CCC from the bankruptcy estate "may have a Deleon bearing on the Commonwealth's ability to address these outstanding liabilities."

The letter concludes by thanking the OAG for its continued representation throughout the bankruptcy proceedings and requesting an update on the status of the CCC's claims.