Jamaican attractions company Dolphin Cove Limited is reporting business as usual despite its parent company, World of Dolphins Inc, being embroiled in an insolvency debacle in the Mexican court system.

Controladora Dolphin, S.A. de C.V. also known as Dolphin Discovery Mexico, which owns 90 per cent of World of Dolphins Inc. (Barbados), has initiated voluntary proceedings under Mexico’s concurso mercantil process (a corporate restructuring and insolvency procedure under Mexican law).

Dolphin Discovery Group owes US$200 million in liabilities to funds associated with Prudential Insurance, Cigna Insurance and Life Insurance.

Dolphin Cove’s shareholding pledged

As part of that process, 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. 

Company secretary Rhonda Goodison explains that the Jamaican company 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.”

She advises, “Dolphin Cove Limited’s operations continue unaffected and the Company will maintain its independent operational status. The Board will continue to monitor the situation and make further disclosures as required.”

Goodison, in a regulatory filing with the Jamaica Stock Exchange (JSE), where its shares are traded on the junior market stated, “It is our understanding that the concurso mercantil process initially provides for a conciliation phase of up to 365 days during which Controladora may reach agreements with its creditors. If no agreement is reached, the process may move to a liquidation phase.”

The company reports that shareholders and other market participants should be guided accordingly.

Last week Dolphin Cove’s shares tumbled on the local stock market, reportedly wiping out J$361 million (US$2.3 million) in market value after reports emerged that Controladora Dolphin S.A. de C.V (Dolphin Discovery), had filed for bankruptcy.