Dolphin Cove in Turmoil: Boardroom Battle, Stock Crash, and Bankruptcy Fallout

By BATV News

Jamaica’s premier marine attraction company, Dolphin Cove Limited, is currently navigating stormy waters as an escalating conflict between founder Stafford Burrowes and Eduardo Albor Villanueva, CEO of parent company The Dolphin Discovery Group, morphs into a full-fledged boardroom battle. This high-profile dispute has unnerved investors, sparked regulatory scrutiny, and contributed to a sharp tumble in share value.

Public Fallout: April 8 Notice Sparks Market Panic

On April 8, 2025, a notice signed by Eduardo Albor and Concepción Esteban Manchado, directors of World of Dolphins Inc. (WODI)—Dolphin Cove’s immediate parent company—was published on the company’s website and Instagram page. This public communication leveled serious accusations against independent Jamaican directors Noel Levy, John Bailey, and Richard Downer, along with company secretary Rhonda Goodison. The central issue: the contested termination of Stafford Burrowes, who has served as chairman since the company’s founding in 1998.

WODI alleged that Burrowes was removed from the board under Article 95 (g) of the Articles of Incorporation. They claimed to have submitted a resolution on November 10, 2024, citing inappropriate conduct and disrespect toward Dolphin Cove staff. The resolution proposed barring Burrowes from all company facilities and filing criminal charges if he attempted to enter.

However, no notification of this alleged termination was published on the Jamaica Stock Exchange (JSE), and the Companies Office of Jamaica offered no confirmation of any board changes.

Dueling Disclosures and Legal Wrangling

In a conflicting statement posted on April 2, Dolphin Cove asserted that Burrowes remains chairman based on legal advice. A subsequent JSE filing on April 15 reinforced that position, declaring the WODI notice as ineffective under Article 95(h) since it lacked proper legal formatting and authorisation.

WODI contends that Dolphin Cove’s Jamaican directors are actively shielding Burrowes and withholding material information from the JSE. They further alleged legal bias in a legal opinion sought by the Jamaican directors from Gina Phillipps Black of Myers, Fletcher & Gordon (MF&G), Dolphin Cove’s legal firm.

Legal counsel for WODI, Trevor Patterson of Patterson Mair Hamilton, has reportedly compiled supporting evidence for WODI’s claims, though neither Black nor Patterson has commented publicly.

Shareholders Rattle as Stock Tumbles

The fierce boardroom dispute has had immediate market consequences. Dolphin Cove’s stock plummeted by 11% on April 9, followed by a further 7% drop on April 10, wiping out J$1.09 billion (US$6.88 million) in market value. Although there was a brief rebound to $14.19, shares remain down 23% year-to-date.

Investor anxiety stems not only from the board dispute but also from WODI’s call for the JSE to investigate the independent directors and potentially suspend trading of the stock—an action that could cripple liquidity.

A History of Declining Fortunes

This isn’t the first sharp decline for Dolphin Cove in 2025. On February 17, the stock fell a staggering 37% in a single day amid revelations that Dolphin Discovery, WODI’s parent company, had entered a Mexican court-supervised Concurso Mercantil restructuring process, similar to bankruptcy proceedings.

By February 28, Dolphin Cove acknowledged that its parent company had initiated this insolvency-like action to restructure more than US$200 million in liabilities.

Bankruptcy Protection in the U.S.

The crisis deepened when it was revealed that Dolphin Discovery Group and 14 affiliated companies filed for Chapter 11 bankruptcy in the U.S. on March 31. The filing in Delaware estimates assets and liabilities between US$100 million and US$500 million, and identifies up to 999 creditors.

The bankruptcy documents—submitted by Steven Robert Strom, now overseeing the group—detailed plans to raise US$8 million in emergency liquidity and to dismiss the Concurso Mercantil proceedings due to a lack of corporate authority in its filing.

Founder Still Holds Stake and Support

Despite selling a controlling interest for over US$35 million in 2015, Stafford Burrowes, via Garden House Holdings Limited, remains the second-largest shareholder with 9.81% of Dolphin Cove. He has not publicly addressed the latest developments, but in February hinted at a willingness to buy back the company if the opportunity arises.

A February 25 e-mail from director Richard Downer, included in a 21-page appendix on Dolphin Cove’s website, urged Albor to de-escalate the dispute for the sake of the company’s reputation.

Looming Questions and Delays

Dolphin Cove’s 2024 audited financials are yet to be published, missing the April 15 deadline. The audit committee has cited delays in obtaining clarity around the Concurso Mercantil as a key factor.

Stakeholders and the investing public await clarification on governance, an update on the appointment of a new chairman, and more transparency in disclosures. A scheduled creditors’ meeting on May 8 in the U.S. bankruptcy case may further reveal the extent of Dolphin Discovery’s financial distress and its implications for Dolphin Cove.

Conclusion

The ongoing crisis at Dolphin Cove encapsulates the complexities of cross-border corporate governance, especially when local and international stakeholders clash. As boardroom battles, insolvency proceedings, and regulatory scrutiny unfold, investors are left grappling with uncertainty in one of Jamaica’s most iconic tourism-linked public companies.

BATV News will continue monitoring this developing story.

For feedback: contact the BATV Editorial Division at: info@batvja.com