ANGEL Playing Cards U.S.A. or APC and Imperial Pacific International LLC’s court-appointed receiver, Clear Management Group, have informed the federal court about the sale of 201 Super Angel Eye dealing shoes to Angel.
On Oct. 12, 2022, the receiver received from APC payment for the dealing shoes amounting to $301,500
The transaction was signed by attorney Michael White, who represented Clear Management, and attorney Richard Miller, who represented APC.
Chief Judge Ramona V. Manglona of the District Court for the NMI earlier granted the stipulation of Clear Management Group and APC for the repurchase of 201 Super Angel Eye dealing shoes at the unit price of $1,500, for a total of $301,500; and the repurchase of all Angel playing cards in Clear Management’s possession at the unit price of $0.10 per deck.
Judge Manglona also granted the request of attorney Michael White, to have the funds transferred and held in an escrow trust account.
According to the stipulation of the parties, APC previously sold a series of products to IPI, including dealing shoes and playing cards
On Oct. 26, 2021, the federal court appointed Clear Management as limited receiver to take possession of and sell at auction IPI’s casino gaming equipment.
In a motion opposing the auction of APC products, APC asserted that IPI acquired only a right to use Angel products and that, therefore, Clear Management could not transfer title to APC products to purchasers at auction.
At a hearing on Nov. 29, 2021, the court stayed the auction of APC products for 30 days.
On Dec. 17, 2021, the court issued the first of a series of orders staying the receivership.
On April 14, 2022, the court denied APC’s motion without prejudice and with the understanding that if the stay was ever lifted, APC could refile the motion.
On Aug. 16, 2022, the court lifted the stay on the limited receivership.
Since the lifting of the stay, APC and Clear Management had negotiated for APC to repurchase the 201 dealing shoes at the unit price of $1,500 for a total of $301,500. The market price for purchasing new Super Angel Eye dealing shoes is $4,200 per unit.
Clear Management said “the market for the pre-owned dealing shoes items is extremely limited, given their age and the adverse storage conditions the shoes have been exposed to. No bids were received on the shoes before the initial auction was stayed.”
Clear Management and APC agreed that “the proposed repurchase price for the dealing shoes is reasonable and represents the maximum value that could be obtained for the preowned dealing shoes in the present market.”
In 2016, IPI and APC entered into an agreement for IPI to purchase a total of 1,935,360 decks of playing cards over a period of time. The final purchase and shipment of decks occurred in January 2020. Clear Management had yet to determine the number of decks in inventory.
“Because playing cards have a limited lifespan and are routinely destroyed or canceled when a casino takes them out of use, the inventory of decks is believed to be substantially less than 1.9 million,” court documents stated.
APC and Clear Management have agreed that APC may repurchase any decks that are located at a price of $0.10 per deck.
The limited receivership was established in USA Fanter Corporation v. Imperial Pacific International (CNMI), LLC, Case No. 1:20-cv-00003.
USA Fanter sued IPI for its failure to pay the full amount due under their construction contract for labor and materials provided for the improvement of the Saipan casino investor’s real property in Garapan.
According to that lawsuit, IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
Judge Manglona has issued a final judgment in favor of USA Fanter.
Judgment satisfied
In a related matter, another judgment creditor, N15 Architecture Company Inc., notified the federal court that IPI has satisfied N15’s judgment against IPI, and requested that N15 be permitted to withdraw from the limited receivership.
On Oct. 5, 2022, Judge Manglona granted the N15 motion and ordered that it will no longer participate in the limited receivership established in the USA Fanter Corporation v. Imperial Pacific International (CNMI), LLC, Case No. 1:20-cv-00003.
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