Dolphin Cove ‘safe’ even as connected company appears headed for bankruptcy

Marine park operator Dolphin Cove Limited says it is business as usual, even as the company that owns World of Dolphins (Barbados) is set to go through corporate restructuring and insolvency procedures.

Dolphin Cove Jamaica features five dolphin habitats spread between Montego Bay, St James; and Ocho Ríos, and Puerto Seco and Moon Palace in St Ann.

In a market filing, Dolphin Cove reported that Controladora Dolphin SA de CV, also known as Dolphin Discovery (Mexico), “has initiated voluntary proceedings under Mexico’s concurso mercantil process, (which is) a corporate restructuring and insolvency procedure under Mexican law”. Controladora Dolphin owns 90 per cent of World of Dolphins Inc (Barbados), while the latter company owns 79.99 per cent of Dolphin Cove.

Founder of Dolphin Cove Stafford Burrowes said the proceedings would not harm Dolphin Cove in any way.

“It’s not affecting us … in that they’re just merely shareholders. Like any other shareholder, they have had a problem,” Burrowes told the Financial Gleaner on Thursday.

But if it comes to the point where the Mexican owners put their shares up for sale, Burrowes said he is in a position to buy them up.

“I’ve had offers to assist me if I need any assistance,” he said, “… and I would definitely consider it,” he added.

Burrowes said that Dolphin Discovery – which operates one park in Argentina, five parks in Florida, and several in Italy, the Caribbean, and Mexico, had borrowed “quite a bit of money” before the COVID-19 pandemic in 2020, but the Jamaican operation did not do so.

“Dolphin in Jamaica did not suffer from COVID-19 because we didn’t owe money,” Burrowes said. “We were able to go through (the pandemic) without taking loans; so we were good.”

He added that Controladora Dolphin’s troubles seemed to have started when the Dolphin Discovery purchased Miami Seaquarium.

“World of Dolphins Inc has pledged its 79.99 per cent shareholding in Dolphin Cove as collateral for a note purchase agreement on behalf of Controladora/Dolphin Discovery,” the market filing noted.

Dolphin Cove added that it “has given no guarantees or undertakings or pledged or encumbered any assets in relation to the obligations of any group enterprise or other party whatsoever”.

“They bought Miami Seaquarium and it’s been giving them a hard time; a very, very hard time,” Burrowes said. “There was some bad publicity about the park and about dolphins, and it dropped the attendance badly.”

The concurso mercantil process initially provides for a conciliation phase of up to 365 days, during which Controladora may reach agreements with its creditors. And Dolphin Cove is keeping watch.

“It’s a long process. They are (in a position) to look at being able to restructure themselves without being bankrupt for 30 days, but that can be extended for 365 days. They can operate pretty much as normal, but they would not be in bankruptcy to the stage of having to sell assets,” Burrowes said.

Were the matter to reach that stage, he added, where the shares are to be sold, then as founder for Dolphin Cove, he was in a good position to repurchase any shares that come on the market.

Meanwhile, the attractions company continues to be without a chairman. Word has come from Dolphin Discovery that Burrowes had been removed as chairman but no notice to that effect has been published on the Jamaica Stock Exchange.

Asked for an update, Burrowes said he will not offer any comment at this time.

“That is in a situation that I don’t want to comment on. There is a request for legal consultations and the stock exchange will soon get it, and I’m not going to comment on it,” he said.

neville.graham@gleanerjm.com