US Court dismisses Tinian Dynasty’s petition for bankruptcy

Hong Kong Entertainment Investments Ltd, owner of Tinian Dynasty has had their petition for bankruptcy dismissed, and had all other pending motions filed in the case rendered moot, local media reports.

The decision was made by U.S. Bankruptcy Judge Robert J. Faris after conducting a hearing via video teleconference between assistant U.S. Trustee Curtis Ching, who appeared via video teleconference from the District of Hawaii while Timothy H. Bellas, counsel for HKE, appeared in the courtroom of the District Court for the NMI.

After hearing both sides, the court granted the U.S. Trustee’s motion to dismiss the case without precluding HKE from re-filing its Chapter 11 bankruptcy petition.

Ching said there were at least three reasons under the Bankruptcy Code for the motion to dismiss, including lack of appropriate insurance, the incurrence of substantial losses and lacking reasonable likelihood or rehabilitation and non-compliance with the U.S. Trustee’s standard request for background documents.

On Dec. 11, 2015, HKE filed a voluntary petition under Chapter 11 of the Bankruptcy Code, which would allow HKE to enter into an agreement with creditors under which all or a part of the business can continue.

However, Ching said HKE is accruing substantial losses while it is in Chapter 11. Tinian Dynasty, he added, has three secured creditors which are owed about $195 million and none of the three claims is disputed.

The hotel’s casino operations had been closed since August last year due to non-compliance with requirements of the Tinian Casino Gaming Control Commission, and has been hoping to reopen.