Due to the ongoing chapter 11 bankruptcy case for Leisure Investments Holdings LLC (LIH), World of Dolphins Inc is exploring the sale of its 79.99 per cent stake in Dolphin Cove Limited (DCOVE).

World of Dolphins made the announcement on Tuesday and is inviting interested parties to purchase some or all its shares in Dolphin Cove. World of Dolphins acquired the majority interest in Dolphin Cove from founder and chairman Stafford Burrowes in 2015 for over US$35 million or US$0.1338 ($16.03) per share.

“World of Dolphins asks that parties interested in purchasing some or all of its 79.99 per cent stake in Dolphin Cove please reach out to Jakub.Mleczko@greenhill.com and Charles.Geizhals@greenhill.com at Greenhill & Co, who is serving as the company’s investment banker. For inquiries, Greenhill advisors will provide non-disclosure agreements and data room access, including a detailed timeline for the sale process,” stated the PR newswire release by LIH.

LIH entered chapter 11 proceedings on March 31 after Strom was appointed the administrator/authorised person for Leisure Investments and its other subsidiaries. Strom’s appointment was authorised by noteholders which exercised their collateral rights to remove all existing members and directors of Leisure Investments and Controladora Dolphin SA de C.V. (Dolphin Discovery), along with other Mexican and American subsidiaries. Noteholders are owed over US$100 million.

Former Dolphin Discovery chief executive officer and majority LIH shareholder Eduardo Albor Villanueva battled Strom in court for almost three months for control of the company. However, Albor stopped his legal fight with Strom after he was found in contempt of court on June 5 by Judge Laurie Selber Silverstein for different violations. Albor, Valeria Albor Dominiguez, Sergio Jacome Palma, and Federico Lozano Perez were removed from Dolphin Cove’s board on June 30.

Strom and Burrowes were appointed directors on July 1 and were elected on July 3 at the company’s annual general meeting. Burrowes still retains a 9.81 per cent interest in Dolphin Cove and a 2.45 per cent stake in TD Leisure Holdings LLC which is the parent company of Leisure Investments Holdings LLC. Dolphin Cove opened for operations in February 2001 before listing on the Junior Market of the Jamaica Stock Exchange in December 2010.

Dolphin Cove’s six months revenue decreased five per cent to US$8.36 million due to lower visitor arrivals through Sangster International Airport. Despite a four per cent reduction in operating expenses to US$4.93 million, Dolphin Cove’s profit before tax declined 14 per cent to US$2.16 million with net profit down nine per cent to US$1.93 million.

Dolphin Cove had US$36.63 million in total assets, with US$26.39 million in property, plant and equipment and US$696,694 in cash. Shareholders’ equity was US$31.18 million at the end of June.

Dolphin Cove’s stock price is down a quarter this year at $13.95. The company paid a $0.60 dividend totalling $235.46 million, on June 27.