General

Imperial Pacific to seek extension

THE board of directors of Imperial Pacific International Holdings Ltd. announced Thursday that it will request an extension of the completion deadline for its casino-resort project, Imperial Palace Saipan.

The board informed the Hong Kong Stock Exchange that many issues outside Imperial Pacific’s control have made it impossible to complete the project by Aug. 31.

These issues include the termination of contracts with IPI’s original contractors and the subsequent drastic cuts in labor.

IPI did not mention a new completion date, but it said it is “already in the process of preparing  the application to be made to the relevant CNMI government authorities for an extension of completion deadline, in accordance with the process as provided under the casino license agreement.”

IPI’s financial report filed with the Hong Kong Stock Exchange also indicated  a significant drop in the casino investor’s profit in 2017.

IPI said its profit before tax in 2017 amounted to $110.96 million which was  $28.8 million less than its profit before tax in 2016.

The drop in profit was attributed to an “increase in impairment losses of trade receivables” as well as operating and administrative expenses incurred in 2017.

IPI said its gross revenue was $1.67 billion in 2017 which was principally attributed to the “rapid growth” of its VIP gaming operations.

But its total liabilities as of Dec. 31, 2017 was $1.5 billion which represented “borrowings, loans from related parties, convertible bonds and notes, unsecured bonds and notes, and other unallocated liabilities.”

IPI’s liabilities in 2016 totaled $860.434 million.

In its report, IPI identified at least eight operating expense items and taxes it must pay. These include the business gross revenue tax, the amortization of prepaid land lease payments, the casino license fees, and employee benefits for a total of $82.1 million.

IPI said $307 million was invested in the design and construction of its Garapan casino resort, bringing its total investment amount to $650 million as of Dec. 31, 2017.

Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/103309-imperial-pacific-to-seek-extension

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