7 Nov 2006

Five CNMI businesses close due to bankruptcy

11:22 am on 7 November 2006

In the Commonwealth Northern Mariana Islands, five Saipan businesses were shut down last week due to bankruptcy.

The owner of the businesses Maria Tagorda owes more than US$90,000 dollars to creditors such as the Commonwealth Health Center and the Commonwealth Utilities Corporation.

She claimed to have about US$20,000 dollars in personal property, but the Bankruptcy Act says most assets of the debtor are to be liquidated to pay off creditors.

Ms Tagorda says financial problems occurred due to economic difficulties with increased utility rates and an 85-percent revenue loss at one restaurant.