A law firm based in the Northern Mariana Islands, representing a primary lender for the bankrupt and closed Imperial Pacific Saipan casino resort, has reported interest in a potential takeover. The Dotts Law Office, representing a significant creditor in the failed luxury casino venture originally envisioned by Chinese billionaire Cui Lijie, disclosed to the Saipan Tribune this week that Imperial Pacific International (IPI), the bankrupt entity under liquidation, must swiftly provide necessary materials that will enable creditors to secure the best acquisition bid for the property in this US territory.
Attorney Michael Dotts emphasized the need for a structured procedure enabling investors to access due diligence materials. “A proper procedure needs to be put in place so that other investors can obtain due diligence material. IPI is in possession and control of material needed for potential purchasers to consider the investment,” Dotts said. These materials include blueprints, construction inspection reports, permits, construction contracts, and estimates for completing the building. Dotts called for the assembly of a comprehensive ‘bid package.’
Dotts did not identify the party behind the potential acquisition but revealed that his client was offered $10 million. He advised his client to reject the offer, advocating instead for IPI to release bidding materials and conduct a competitive auction. Dotts proposed a blind, sealed bidding process starting at $10.3 million, spanning a 90-day period, and endorsing property access for interested firms to conduct inspections. “It is in the best interest of the Commonwealth of the Northern Mariana Islands and of all creditors who reside here that not only the highest price is obtained for the property, but that the purchaser actually completes the project,” Dotts concluded.
Cui, an early investor in one of Macau’s largest junket groups, founded IPI with her son Ji Xiaobo over a decade ago, setting out to create a $3.9 billion casino destination in the Northern Mariana Islands. Despite securing the commonwealth’s lone gaming concession, the project faced significant obstacles almost immediately.
The FBI raided the resort’s construction site following a worker’s death in 2017, amidst reports of unsafe working conditions and the trafficking of many workers from China into near slave-like conditions with low pay. The US Department of Labor ultimately ordered IPI to pay $13.9 million in back wages.
The $550 million first phase of the luxurious resort, featuring a dragon art structure adorned with 2.5 million Swarovski crystals and a fleet of Rolls-Royce vehicles, opened in 2017. The casino reported astonishing earnings in its first six months, with gross gaming revenue exceeding $1 billion. However, the casino faced scrutiny for potential money laundering, with records suggesting it facilitated over $2 billion a month in VIP bets on just 20 table games, placing it among the world’s wealthiest casinos.
Despite its impressive numbers, Imperial Pacific’s statistics were about one-third of what Wynn Macau reported during the same period, although Wynn Macau offered nearly 200 table games, Michelin-starred restaurants, easy international airport access, and global name recognition.
Travel to Saipan is challenging, requiring over five hours from Hong Kong or Macau and seven hours from Manila, Philippines. The resort’s downfall was catalyzed by COVID-19 travel restrictions. With VIP guests confined to mainland China under President Xi Jinping’s strict “zero-COVID” policies, IPI failed to meet its financial obligations to the Northern Mariana Island government. The company eventually filed for bankruptcy, a move reportedly costing Cui more than $1 billion.
