WEBVTT 00:00:05.870 --> 00:00:14.189 Please be seated. Good morning, Your Honor. Robert 00:00:14.189 --> 00:00:16.870 Brady on behalf of Leisure Investments Holdings 00:00:16.870 --> 00:00:20.809 LLC at all. We thank the court for hearing us 00:00:20.809 --> 00:00:24.530 this morning on some important motions. As we've 00:00:24.530 --> 00:00:27.129 done the last few hearings, I'd like to start 00:00:27.129 --> 00:00:29.250 with just a brief status report on our efforts. 00:00:30.349 --> 00:00:32.929 These are the debtors' efforts to obtain control 00:00:32.929 --> 00:00:35.729 over the debtors' operations, books and records, 00:00:36.850 --> 00:00:39.409 protect the animals and other estate assets, 00:00:40.210 --> 00:00:43.009 and develop our strategy to reorganize these 00:00:43.009 --> 00:00:47.049 companies. The debtors have hired an animal welfare 00:00:47.049 --> 00:00:52.649 expert who is now on board. In fact, he's currently 00:00:52.649 --> 00:00:57.460 handling a move of sea lions, regulatory bodies 00:00:57.460 --> 00:01:00.460 in Florida forced the closure of a sea lion pen 00:01:00.460 --> 00:01:05.180 at the Gulf World facility in contemplation of 00:01:05.180 --> 00:01:08.760 needed maintenance. So we, using our animal welfare 00:01:08.760 --> 00:01:11.319 expert, are moving those sea lions to a different 00:01:11.319 --> 00:01:15.859 location. He's also actively conducting diligence 00:01:15.859 --> 00:01:18.280 on the animals and the conditions at the various 00:01:18.280 --> 00:01:23.159 facilities that we have access to. The debtors 00:01:23.159 --> 00:01:26.469 have hired and, Investment banker, that motion 00:01:26.469 --> 00:01:29.909 will be coming. Greenhill was the selected banker 00:01:29.909 --> 00:01:33.590 after interviewing five different banking firms. 00:01:34.290 --> 00:01:36.450 And we've hired a real estate consultant, Keen 00:01:36.450 --> 00:01:38.750 Summit. Of course, I'm sure very familiar with 00:01:38.750 --> 00:01:42.250 Keen Summit. We've had kickoff calls with both 00:01:42.250 --> 00:01:45.349 of those advisors to get that process started. 00:01:47.010 --> 00:01:51.049 We have completed the governance changes in Italy. 00:01:52.459 --> 00:01:55.840 As a result, Riveron is leaving for Italy tomorrow. 00:01:56.700 --> 00:01:58.640 Since my schedule freed up a bit this week, Your 00:01:58.640 --> 00:02:02.579 Honor, I might join them. But they're going there 00:02:02.579 --> 00:02:04.620 to conduct necessary diligence and meet with 00:02:04.620 --> 00:02:08.340 the management team in Italy. We've had several 00:02:08.340 --> 00:02:12.500 meetings with the Mayor of Miami on the Miami 00:02:12.500 --> 00:02:21.939 Seaquarium litigation, animal welfare. We've 00:02:21.939 --> 00:02:24.960 retained regulatory counsel to assist with our 00:02:24.960 --> 00:02:27.759 dealings and discussions with the United States 00:02:27.759 --> 00:02:31.000 Department of Agriculture, so they're on board. 00:02:31.819 --> 00:02:34.539 And we continue to make progress on affecting 00:02:34.539 --> 00:02:36.860 the governance changes throughout the corporate 00:02:36.860 --> 00:02:39.960 structure. As you'll learn today, Your Honor, 00:02:39.960 --> 00:02:42.439 one area that we've struggled to make progress, 00:02:43.319 --> 00:02:46.439 despite a significant amount of work and effort, 00:02:47.000 --> 00:02:50.500 and that is in Mexico. And it comes down to... 00:02:50.349 --> 00:02:53.909 In our opinion, Mr. Alvore's refusal to honor 00:02:53.909 --> 00:02:56.270 the automatic stay and this court's turnover 00:02:56.270 --> 00:02:59.169 order. So you don't have to take my word for 00:02:59.169 --> 00:03:01.810 it, Your Honor. We have three witnesses available 00:03:01.810 --> 00:03:05.569 today that we would proceed with. We think it 00:03:05.569 --> 00:03:08.310 makes sense to just start with that motion since 00:03:08.310 --> 00:03:17.419 it is so vital to our efforts. Before we start 00:03:17.419 --> 00:03:19.719 with the motion, if you would like to make some 00:03:19.719 --> 00:03:23.280 statements. Thank you, Your Honor. James Moon, 00:03:23.340 --> 00:03:28.599 M -O -O -N, on behalf of El Duado El Boat. Also 00:03:28.599 --> 00:03:31.280 with me is our local council, Michael Busenkel. 00:03:35.080 --> 00:03:42.240 Thank you. Let me ask this. I saw in the responsive 00:03:42.240 --> 00:03:49.210 papers An overture to work toward a resolution. 00:03:49.389 --> 00:03:55.949 Have there been discussions? As soon as Mr Moon 00:03:55.949 --> 00:03:59.210 was retained, we did have a conversation. I think 00:03:59.210 --> 00:04:02.509 they were careful in the papers to talk about 00:04:02.509 --> 00:04:05.009 giving us access to you and information on the 00:04:05.009 --> 00:04:08.750 US entities. We really need. I mean, as you heard 00:04:08.750 --> 00:04:12.889 on the first day. The company stopped sending 00:04:12.889 --> 00:04:15.430 financial statements to the banks. stopped doing 00:04:15.430 --> 00:04:19.670 any reporting almost a year before the bankruptcy. 00:04:21.230 --> 00:04:23.689 And that's really why Mr. Albor was replaced, 00:04:23.870 --> 00:04:26.029 that they were in default, and the banks were 00:04:26.029 --> 00:04:28.889 getting none of their necessary reporting. We 00:04:28.889 --> 00:04:32.949 need access to those financial statements, the 00:04:32.949 --> 00:04:35.949 books and records. We understand, and you'll 00:04:35.949 --> 00:04:41.410 hear today, Mr. Albor challenges Mr. Strom's 00:04:41.410 --> 00:04:44.420 position. But I think you will learn today that 00:04:44.420 --> 00:04:48.519 as of now Mr. Strom is the valid corporate governance 00:04:48.519 --> 00:04:50.959 of control the door dolphin while litigation 00:04:50.959 --> 00:04:59.120 is pending He is the sole director So we're entitled 00:04:59.120 --> 00:05:02.480 to that information and it's necessary again 00:05:02.480 --> 00:05:07.800 They have no access to any liquidity. So I don't 00:05:07.800 --> 00:05:11.420 know how the Mexican entities are spending the 00:05:11.420 --> 00:05:13.839 bank's cash collateral or the lender's cash collateral, 00:05:14.079 --> 00:05:18.079 but they are operating the business in default 00:05:18.079 --> 00:05:21.600 utilizing the lender's cash collateral, which 00:05:21.600 --> 00:05:24.560 we think is impermissible. But we need access 00:05:24.560 --> 00:05:26.500 to that information to make sure the animals 00:05:26.500 --> 00:05:29.160 are being cared for, we understand the financials, 00:05:29.199 --> 00:05:31.120 and we can start the process of determining the 00:05:31.120 --> 00:05:37.360 best way to reorganize these businesses. So yes, 00:05:37.360 --> 00:05:39.579 actually, as soon as we made our appearance, 00:05:39.579 --> 00:05:41.879 Your Honor, the first thing that we did was called 00:05:41.879 --> 00:05:43.980 debtor's counsel. We've been doing this a long 00:05:43.980 --> 00:05:47.199 time. We don't sandbag. And we wanted to make 00:05:47.199 --> 00:05:49.139 sure that we reached out to find out, is there 00:05:49.139 --> 00:05:51.220 a way that we can work with this? And we've got 00:05:51.220 --> 00:05:55.620 some really hard practical issues here. The first, 00:05:55.920 --> 00:05:58.860 obviously, is that Mr. Albor does not want to 00:05:58.860 --> 00:06:01.939 offend this court. He is a businessman of great 00:06:01.939 --> 00:06:04.259 reputation in Mexico. I gave a little bit of 00:06:04.259 --> 00:06:06.079 that background in our response, Your Honor. 00:06:06.920 --> 00:06:09.699 But the issue is that he has real issues with 00:06:09.699 --> 00:06:12.000 respect to his due process rights and those of 00:06:12.000 --> 00:06:16.139 Controladora in Mexico. Now, they say that it's 00:06:16.139 --> 00:06:19.660 completely resolved. We say that it isn't. And, 00:06:19.660 --> 00:06:21.819 you know, from my view, Your Honor, the fact 00:06:21.819 --> 00:06:24.180 that they're asking for another $300 ,000 retainer 00:06:24.180 --> 00:06:26.399 for Mexican counsel tells you it's not resolved. 00:06:26.779 --> 00:06:29.060 And it's not going to be resolved necessarily 00:06:29.060 --> 00:06:31.879 fairly quickly. We have conflicting orders from 00:06:31.879 --> 00:06:34.779 the very same court, the very same judge. We 00:06:34.779 --> 00:06:37.860 have different orders from Cancun, from Mexico 00:06:37.860 --> 00:06:40.579 City, from the Concurso Mercantile Court, which 00:06:40.579 --> 00:06:43.139 are all under review. And those are going to 00:06:43.139 --> 00:06:45.360 have to be resolved pursuant to Mexican law. 00:06:45.819 --> 00:06:47.759 We have to remember, Your Honor, that these particular 00:06:47.759 --> 00:06:51.459 entities filed well before any of these actions 00:06:51.459 --> 00:06:54.439 were taken on March 28th with respect to the 00:06:54.439 --> 00:06:58.019 Mexican entities. There was, as you saw in the 00:06:58.019 --> 00:07:00.579 papers from both sides, there were precautionary 00:07:00.579 --> 00:07:04.100 measures entered. And Your Honor, I don't know 00:07:04.100 --> 00:07:06.459 if this is the right time to do it, but we did 00:07:06.459 --> 00:07:09.060 see that there had been a declaration filed late 00:07:09.060 --> 00:07:13.199 yesterday from their Mexican Council. We felt 00:07:13.199 --> 00:07:15.699 the need to respond with ours. I have a copy 00:07:15.699 --> 00:07:17.120 of it because I didn't know if you had a chance 00:07:17.120 --> 00:07:31.810 to look if I may approach your honor. The point 00:07:31.810 --> 00:07:33.290 of it, Your Honor, and I'm sure you'll get a 00:07:33.290 --> 00:07:38.089 chance to read it, is that, and this is not to 00:07:38.089 --> 00:07:43.550 disparage any lawyer or any position, but advocates 00:07:43.550 --> 00:07:46.889 advocate. You're hearing two different sides 00:07:46.889 --> 00:07:51.269 from two very well -entrenched, respected legal 00:07:51.269 --> 00:07:53.930 teams that are dealing with this, that are fighting 00:07:53.930 --> 00:07:55.990 tooth and nail in Mexico to deal with what they 00:07:55.990 --> 00:07:58.350 both believe are their rights under the documents. 00:07:58.670 --> 00:08:01.029 The problem is because this was initiated in 00:08:01.029 --> 00:08:04.329 Mexico, these orders originated in Mexico, the 00:08:04.329 --> 00:08:06.629 appellate procedures are in Mexico, the imparo 00:08:06.629 --> 00:08:09.490 proceedings are in Mexico, Mexican courts need 00:08:09.490 --> 00:08:12.149 to deal with this. And the problem is if you 00:08:12.149 --> 00:08:15.250 interfere with that, two things happen. One, 00:08:15.689 --> 00:08:17.790 you may issue an order that conflicts with those 00:08:17.790 --> 00:08:19.870 orders, and now we have a problem of international 00:08:19.870 --> 00:08:21.730 comedy. Because what is the Mexican court to 00:08:21.730 --> 00:08:23.850 do? They've actually, if you look at the April 00:08:23.850 --> 00:08:26.720 10th order, You'll see that they talked about 00:08:26.720 --> 00:08:28.459 issuing a letter of regulatory to this court 00:08:28.459 --> 00:08:30.220 to let you know what's going on. They're not 00:08:30.220 --> 00:08:32.659 hiding. They're trying to tell you this is what's 00:08:32.659 --> 00:08:36.000 going on. The other issue, Your Honor, is that 00:08:36.000 --> 00:08:38.700 it looks to me, from the papers, there's this 00:08:38.700 --> 00:08:42.840 clear intent to try to make it look like the 00:08:42.840 --> 00:08:46.019 April 5th order is somehow better or more validity 00:08:46.019 --> 00:08:48.519 in effect than the April 10th order, which did 00:08:48.519 --> 00:08:51.919 not supersede it, but post -dated it. It's not 00:08:51.919 --> 00:08:54.080 true, Your Honor. Both of those honors, both 00:08:54.080 --> 00:08:58.159 of those orders were entered ex parte provisionally 00:08:58.159 --> 00:09:01.580 in this exact same manner, Your Honor. And the 00:09:01.580 --> 00:09:04.059 April 28th order, which you will see an actual 00:09:04.059 --> 00:09:06.679 certified translation of that order attached 00:09:06.679 --> 00:09:10.659 to Mr. Barajas' declaration, that makes very 00:09:10.659 --> 00:09:13.820 clear, and Mr. Barajas points out, nothing has 00:09:13.820 --> 00:09:15.799 changed. The only thing that's happened is that 00:09:15.799 --> 00:09:19.899 there's been a motion to accommodate or accumulate, 00:09:20.220 --> 00:09:22.639 a motion to accumulate those orders. because 00:09:22.639 --> 00:09:24.659 the same judge that issued them needs to figure 00:09:24.659 --> 00:09:27.480 out what to do with these two orders. And he 00:09:27.480 --> 00:09:30.879 will do that. And my guess is fairly soon, but 00:09:30.879 --> 00:09:33.580 that process has got to play out. In the meantime, 00:09:33.740 --> 00:09:36.500 what are we to do? Well, we obviously don't want 00:09:36.500 --> 00:09:39.480 the Dolphins to go without food or being cared 00:09:39.480 --> 00:09:42.720 for. And we certainly want employees to get paid. 00:09:43.320 --> 00:09:45.480 So the issue from our perspective is, number 00:09:45.480 --> 00:09:48.940 one, they are very convinced that they had a 00:09:48.940 --> 00:09:51.259 right to enter Mr. Albor's building. We have 00:09:51.259 --> 00:09:53.799 shown that they did not. We've actually attached 00:09:53.799 --> 00:09:56.639 the proof that he was able to provide just one 00:09:56.639 --> 00:09:58.399 of the documents to the district attorney in 00:09:58.399 --> 00:10:01.940 Cancun, which showed that this is Mr. Albor's 00:10:01.940 --> 00:10:04.340 building. It's not any of the dolphin group entities' 00:10:04.740 --> 00:10:06.820 buildings. There is no possessory interest in 00:10:06.820 --> 00:10:09.279 that building, which means that if you want access 00:10:09.279 --> 00:10:11.299 to those books and records, which we're saying 00:10:11.299 --> 00:10:13.679 we're willing to work with you to get them, we 00:10:13.679 --> 00:10:15.980 need a protocol on how to do that. And I think 00:10:15.980 --> 00:10:17.539 that's reasonable. And I've been doing this quite 00:10:17.539 --> 00:10:19.860 a while. Normally, the parties are able to talk 00:10:19.860 --> 00:10:21.740 to each other and figure this out. And where 00:10:21.740 --> 00:10:24.299 we don't agree, we can come back to the court 00:10:24.299 --> 00:10:27.740 and have that decided. But the second problem 00:10:27.740 --> 00:10:32.379 you have is that if you issue an order that says 00:10:32.379 --> 00:10:35.620 he's either you turn over those records by X 00:10:35.620 --> 00:10:39.059 date, if he and his legal team in Mexico are 00:10:39.059 --> 00:10:42.139 telling him under Mexican law that he has a right 00:10:42.139 --> 00:10:45.220 under his due process rights in Mexico not to 00:10:45.220 --> 00:10:47.980 comply with it, he will not because he can't. 00:10:48.200 --> 00:10:51.299 The issue here is not that he's just entitled 00:10:51.299 --> 00:10:54.080 to avail himself of Mexican law. You'll see in 00:10:54.080 --> 00:10:55.700 our papers we talk about the fact that he has 00:10:55.700 --> 00:10:58.240 a requirement to do so. Mr. Barajas actually 00:10:58.240 --> 00:11:00.320 puts that in his declaration as well from his 00:11:00.320 --> 00:11:04.639 legal counsel. So, you know, this is a very sticky 00:11:04.639 --> 00:11:07.740 problem. And if this were a law school exam problem, 00:11:07.759 --> 00:11:10.259 it would be interesting, I suppose. But for us, 00:11:10.340 --> 00:11:12.179 we have to think about practically how do we 00:11:12.179 --> 00:11:15.620 deal with the situation in front of us. without 00:11:15.620 --> 00:11:17.799 violating due process rights of those that are 00:11:17.799 --> 00:11:20.899 entitled to avail themselves of it. The other 00:11:20.899 --> 00:11:23.620 issue we have, Your Honor, is that, think about 00:11:23.620 --> 00:11:27.600 it, we came in, I think, on April 17th. I think 00:11:27.600 --> 00:11:30.700 by that time, by the terms of the interim order, 00:11:30.720 --> 00:11:34.700 he was already not in compliance with that order, 00:11:35.120 --> 00:11:38.179 assuming the service was correct. Assuming that 00:11:38.179 --> 00:11:40.740 the service by his last known email address was 00:11:40.740 --> 00:11:43.720 correct. Which may not even have happened because 00:11:43.720 --> 00:11:45.200 they even talked about the fact that some of 00:11:45.200 --> 00:11:47.539 the emails got blocked But even if it didn't 00:11:47.539 --> 00:11:50.360 in Mexico their position is that they're entitled 00:11:50.360 --> 00:11:52.419 to process to be at service through the Hague 00:11:52.419 --> 00:11:54.919 because they're a Hague signatory I realize all 00:11:54.919 --> 00:11:56.639 the issues in the case law about alternative 00:11:56.639 --> 00:12:01.480 service But you know the issue is not Ultimately 00:12:01.480 --> 00:12:03.139 at the end of the day, which I think they want 00:12:03.139 --> 00:12:04.779 to try to prove today Which I would think would 00:12:04.779 --> 00:12:07.720 be grossly inappropriate that they now control 00:12:07.720 --> 00:12:10.820 the company that is disputed under Mexican law 00:12:11.649 --> 00:12:15.590 Okay? And the issue is not did they have a right 00:12:15.590 --> 00:12:18.549 to execute a board flip. The issue is did they 00:12:18.549 --> 00:12:20.950 do it properly and did they do it when there 00:12:20.950 --> 00:12:23.009 were actually injunctive measures in place by 00:12:23.009 --> 00:12:25.870 the Mexican court, which we argue they were. 00:12:26.610 --> 00:12:29.929 That's precisely why you have the April 10th 00:12:29.929 --> 00:12:32.750 order saying that those were suspended. And, 00:12:32.889 --> 00:12:35.629 you know, I encourage you and I'm sorry for the 00:12:35.629 --> 00:12:37.830 late time. It's just I was traveling on a plane 00:12:37.830 --> 00:12:40.049 yesterday and was dealing with this at 12 o 'clock 00:12:40.049 --> 00:12:42.929 last night. to try to get you something to respond 00:12:42.929 --> 00:12:45.690 so that you understand if you're getting just 00:12:45.690 --> 00:12:48.429 one side of an advocate in a legal proceeding 00:12:48.429 --> 00:12:50.509 in Mexico, you're not getting the full story 00:12:50.509 --> 00:12:53.470 about what it is. But even if you have both sides, 00:12:53.710 --> 00:12:57.610 your honor, is it this court's job to determine 00:12:57.610 --> 00:13:00.149 what a Mexican court should be doing with the 00:13:00.149 --> 00:13:04.350 Mexican court's order? I don't think so. So that 00:13:04.350 --> 00:13:07.169 leaves us with practically what do we do. I think, 00:13:07.289 --> 00:13:10.460 as I said, day one. Tell us exactly what it is 00:13:10.460 --> 00:13:13.840 you need, right? Because number one, as you're 00:13:13.840 --> 00:13:15.600 hearing, they're in charge of a lot of properties, 00:13:15.720 --> 00:13:18.139 apparently in Italy now. They're obviously in 00:13:18.139 --> 00:13:21.100 charge of the properties in the states. There 00:13:21.100 --> 00:13:23.440 are some kinds of books and records there. I 00:13:23.440 --> 00:13:25.860 understand that some are not, but I don't know 00:13:25.860 --> 00:13:28.220 what they are because they haven't told me. We've 00:13:28.220 --> 00:13:30.259 asked for a list. What exactly is it that you 00:13:30.259 --> 00:13:33.000 think that you need from this headquarters building, 00:13:33.059 --> 00:13:35.860 as you call it. We're saying it's Mr. Albor's 00:13:35.860 --> 00:13:38.240 building, which it is, where there are some records. 00:13:38.919 --> 00:13:41.440 Dolphin the second thing is your honor if the 00:13:41.440 --> 00:13:45.340 issue is is related to financial documents It 00:13:45.340 --> 00:13:48.559 would be surprising to me that this company doesn't 00:13:48.559 --> 00:13:51.039 have electronic books and records Which means 00:13:51.039 --> 00:13:53.000 that we would need a protocol for giving you 00:13:53.000 --> 00:13:57.820 stuff or access to stuff that? Satisfies the 00:13:57.820 --> 00:14:00.259 issues with respect to what you need for the 00:14:00.259 --> 00:14:04.340 entities you control that do not invade Mr.. 00:14:04.340 --> 00:14:07.809 Albor's personal records or non -debtor company 00:14:07.809 --> 00:14:10.789 records, and also with the understanding that 00:14:10.789 --> 00:14:12.889 some of those are going to be protected right 00:14:12.889 --> 00:14:16.710 now because of the Mexican entities of the dolphin 00:14:16.710 --> 00:14:20.289 group. So I'm just trying to resolve this practically, 00:14:20.370 --> 00:14:24.490 Your Honor, because I'm trying to put my head 00:14:24.490 --> 00:14:28.350 to how does this court tell someone that is actively 00:14:28.350 --> 00:14:31.669 engaged in the legal process, availing themselves 00:14:31.669 --> 00:14:34.129 of their due process rights in Mexico, you can't 00:14:34.129 --> 00:14:37.149 do that. I'm saying that Mexican law doesn't 00:14:37.149 --> 00:14:39.529 apply to that. I just don't think you can, Your 00:14:39.529 --> 00:14:42.690 Honor. And so let's try to work practically to 00:14:42.690 --> 00:14:46.389 fashion something in the interim where the animals 00:14:46.389 --> 00:14:48.610 are taken care of, employees are paid with respect 00:14:48.610 --> 00:14:51.049 to the entities that they have. And I have not 00:14:51.049 --> 00:14:53.789 heard yet with respect to this hearing that we're 00:14:53.789 --> 00:14:56.830 having in three business days before the May 00:14:56.830 --> 00:15:00.269 5th hearing. What was the emergency? It seems 00:15:00.269 --> 00:15:02.230 to me from what I see in the papers, the emergency 00:15:02.230 --> 00:15:06.769 has to do with Mr. Wachstaff. Basically trespassing 00:15:06.769 --> 00:15:09.990 and illegally seizing mr. Albor's building and 00:15:09.990 --> 00:15:13.090 keep in mind Mr. Albor did not come and throw 00:15:13.090 --> 00:15:14.950 these people out with a group of thugs as they 00:15:14.950 --> 00:15:18.529 suggest with their purported state police he 00:15:18.529 --> 00:15:33.139 went to the district attorney in Cancun But these 00:15:33.139 --> 00:15:35.120 declarations can't come in. Mr. Brady, let me 00:15:35.120 --> 00:15:44.240 ask you a question. Mr. Brady, Mr. Moon is raising 00:15:44.240 --> 00:15:47.820 issues that I have been thinking about in preparation 00:15:47.820 --> 00:15:51.419 for this hearing, which is what is happening 00:15:51.419 --> 00:15:55.480 in Mexico? What should I be doing with respect 00:15:55.480 --> 00:15:59.659 to these entities while there are contested proceedings 00:15:59.659 --> 00:16:06.360 as I understand it in Mexico? and several orders, 00:16:06.559 --> 00:16:10.960 which on the surface appear to be contradictory, 00:16:11.779 --> 00:16:16.639 which a judge has in front of him in Mexico. 00:16:17.299 --> 00:16:22.059 And what should I be doing in that context? Well, 00:16:22.059 --> 00:16:24.779 Your Honor, looking at the declaration they filed 00:16:24.779 --> 00:16:28.740 this morning, paragraph four, they acknowledge 00:16:28.740 --> 00:16:33.799 that the April 28th order states that the March 00:16:33.799 --> 00:16:36.779 28th resolutions, those are the resolutions that 00:16:36.779 --> 00:16:40.559 put Mr. Strom in place, shall be considered valid 00:16:40.559 --> 00:16:43.539 until the court rules on the motions to accumulate. 00:16:44.440 --> 00:16:48.700 So they admit in their own declaration that right 00:16:48.700 --> 00:16:53.120 now Mr. Strom is in charge until further notice. 00:16:54.919 --> 00:16:57.360 The council, we did have a conversation, he's 00:16:57.360 --> 00:17:01.600 not provided a single document to us. not a single 00:17:01.600 --> 00:17:06.400 document since April 16th. We asked for the electronic 00:17:06.400 --> 00:17:08.960 books and records. We asked for access to the 00:17:08.960 --> 00:17:14.200 corporate servers for Dolphin. And we've received 00:17:14.200 --> 00:17:17.920 nothing. So it sounds nice that they want to 00:17:17.920 --> 00:17:20.420 be practical and provide us with information, 00:17:20.420 --> 00:17:23.119 but they haven't. And that's why we're here. 00:17:23.559 --> 00:17:27.299 We're here to make clear that the automatic stay 00:17:27.299 --> 00:17:30.990 and your honors turnover order requires them 00:17:30.990 --> 00:17:34.049 to provide us with the company's books and records. 00:17:34.170 --> 00:17:36.150 I don't know what they're hiding. I don't know 00:17:36.150 --> 00:17:38.750 why it should be this hard. But they have not 00:17:38.750 --> 00:17:43.970 provided us a single document. Nothing. We have 00:17:43.970 --> 00:17:47.349 the orders. We're asking them to comply. Then 00:17:47.349 --> 00:17:50.150 they ask us, well, what do you want? We want 00:17:50.150 --> 00:17:52.769 the company's books and records. We're entitled 00:17:52.769 --> 00:17:56.089 to them. And we think Your Honor can enter an 00:17:56.089 --> 00:18:00.220 order that confirms that The automatic stay covers 00:18:00.220 --> 00:18:03.539 the debtor's property that includes the books 00:18:03.539 --> 00:18:05.900 and records of the debtors and we're entitled 00:18:05.900 --> 00:18:13.299 to them. Okay, I will hear the evidence. I will 00:18:13.299 --> 00:18:18.200 need to read the declaration that was submitted 00:18:18.200 --> 00:18:22.500 and I will have questions about the status of 00:18:22.500 --> 00:18:28.759 the orders in Mexico. because to me, they look 00:18:28.759 --> 00:18:35.200 like they were provisional in nature, akin to 00:18:35.200 --> 00:18:38.720 a preliminary injunction kind of equivalent, 00:18:39.119 --> 00:18:45.640 not final orders, which is what the blurbs for 00:18:45.640 --> 00:18:48.519 the cases that I received from counsel were talking 00:18:48.519 --> 00:18:51.000 about, final orders, and it didn't appear to 00:18:51.000 --> 00:18:54.039 me, the non -expert in Mexican law, that these 00:18:54.039 --> 00:18:58.539 were final orders. So I need to understand more. 00:18:59.839 --> 00:19:04.420 So I'll hear the evidence. And we'll go from 00:19:04.420 --> 00:19:07.680 there. Thank you, Your Honor. Good morning. Michael 00:19:07.680 --> 00:19:09.579 Nyberg from Yonkanawe on behalf of the debtors. 00:19:10.119 --> 00:19:12.700 Just one quick table setting thing, Your Honor, 00:19:12.779 --> 00:19:15.500 because it was confusing to me at first. So there 00:19:15.500 --> 00:19:20.420 are two proceedings in Mexico. And the motion 00:19:20.420 --> 00:19:22.440 to accumulate that was followed by the debtors 00:19:22.440 --> 00:19:26.460 is to consolidate, essentially. The April 28th 00:19:26.349 --> 00:19:30.210 There's two April 28th orders and that's confusing. 00:19:30.430 --> 00:19:34.130 The one that the declarant for Mr. Albert talks 00:19:34.130 --> 00:19:36.769 about one in the proceeding that he commenced. 00:19:37.390 --> 00:19:39.910 The April 28th order that's attached and discussed 00:19:39.910 --> 00:19:43.710 by Mr. Reyes Eskandone is in the proceeding in 00:19:43.710 --> 00:19:45.769 which the motion to accumulate was filed and 00:19:45.769 --> 00:19:49.269 it's that order. It's the one that their declarant 00:19:49.269 --> 00:19:54.650 concedes in paragraph four says the provisional 00:19:54.650 --> 00:19:57.640 orders are parked. Until I rule on the motion 00:19:57.640 --> 00:20:00.839 to accumulate the March 28th resolutions that 00:20:00.839 --> 00:20:03.619 appointed Mr. Strom as sole director of all the 00:20:03.619 --> 00:20:05.579 Mexican entities in the dolphin group remains 00:20:05.579 --> 00:20:09.519 valid. And it's the same resolutions that kicked 00:20:09.519 --> 00:20:11.859 out Mr. Albor and the other directors. So as 00:20:11.859 --> 00:20:14.140 the table sits currently, the Mexican court, 00:20:14.319 --> 00:20:16.180 the one that's deciding everything, has said 00:20:16.180 --> 00:20:19.079 those resolutions shall be considered valid. 00:20:19.599 --> 00:20:21.720 Okay, and don't we have a third proceeding which 00:20:21.720 --> 00:20:24.559 is the concourse sale or whatever the Mexican 00:20:24.559 --> 00:20:27.839 bankruptcy proceeding? I believe your honor that 00:20:27.839 --> 00:20:32.000 was dismissed. And I understand that the dismissal 00:20:32.000 --> 00:20:35.740 is subject to some appellate type relief, but 00:20:35.740 --> 00:20:56.039 as things stand it was dismissed. Acceptance, 00:20:56.059 --> 00:20:58.039 your honor. So it gets even more complicated. 00:20:58.039 --> 00:21:01.180 And what's an M paro proceeding? So your honor, 00:21:01.359 --> 00:21:03.660 we do have next I can't see them, but we do have 00:21:03.660 --> 00:21:05.460 some of our Mexican Council on the line as well. 00:21:05.539 --> 00:21:08.140 They can tell you my understanding of it. I dropped 00:21:08.140 --> 00:21:10.740 it in a footnote as well that they said was OK. 00:21:11.460 --> 00:21:14.380 It's akin to a constitutional like my constitutional 00:21:14.380 --> 00:21:17.220 rights have been violated. It's not an appeal. 00:21:17.740 --> 00:21:19.940 It's something a little different. It's saying 00:21:19.940 --> 00:21:22.339 you violated my constitutional rights by entering 00:21:22.339 --> 00:21:24.700 this order. And it used to be undone, but it's 00:21:24.700 --> 00:21:27.119 not necessarily an appeal. That's a separate 00:21:27.119 --> 00:21:30.640 proceeding and appeals are also the accurate 00:21:30.640 --> 00:21:33.839 way to go about both the April 4th. And April 00:21:33.839 --> 00:21:36.680 10th order and also with respect to what they're 00:21:36.680 --> 00:21:38.940 referring to in here. Keep reading the declaration 00:21:38.940 --> 00:21:41.519 because also with respect to whether something 00:21:41.519 --> 00:21:44.319 still in effect, the April 10th order is still 00:21:44.319 --> 00:21:47.259 in effect. Both of them are in effect because 00:21:47.259 --> 00:21:50.920 they are pending determination by the court that 00:21:50.920 --> 00:21:56.390 is hearing the. Accumulation. Thank you. Okay, 00:21:56.430 --> 00:21:59.869 Mr. Nyberg. Thank you, Your Honor. So just to 00:21:59.869 --> 00:22:01.849 show the path forward, the debtors will seek 00:22:01.849 --> 00:22:04.630 to admit three declarations. We'll take them 00:22:04.630 --> 00:22:06.509 in order. The first is the declaration of Mr. 00:22:06.690 --> 00:22:09.609 Strom. It's the first day declaration, Your Honor. 00:22:10.309 --> 00:22:14.009 Docket number 10, Mr. Strom, you met at the first 00:22:14.009 --> 00:22:18.430 day hearing. He is here in the courtroom. Is 00:22:18.430 --> 00:22:20.329 there any objection to his declaration coming 00:22:20.329 --> 00:22:23.319 in subject to CROSS? So, Your Honor, my only 00:22:23.319 --> 00:22:25.319 issue with that, I have no problem with the declaration 00:22:25.319 --> 00:22:28.119 coming in for the fact that it was filed. I have 00:22:28.119 --> 00:22:30.880 not had the chance to ever meet him. I have not 00:22:30.880 --> 00:22:33.359 had the chance to oppose him. And especially 00:22:33.359 --> 00:22:36.220 on an expedited hearing like this, I've had absolutely 00:22:36.220 --> 00:22:38.619 no opportunity to prepare for a cross. It would 00:22:38.619 --> 00:22:41.380 be severely prejudicial if these are brought 00:22:41.380 --> 00:22:43.640 in for truth of the matters that are raised therein. 00:22:43.940 --> 00:22:45.799 I have no problem with the fact that they're 00:22:45.799 --> 00:22:48.640 there. You can see what he said. That's what 00:22:48.640 --> 00:22:50.920 he said. We have on the other side are verified 00:22:50.920 --> 00:22:53.539 response and you can accept that. Determine what 00:22:53.539 --> 00:22:56.400 you think about the veracity of the parties, 00:22:56.400 --> 00:22:58.759 but it's it's ridiculous for me to try to cross 00:22:58.759 --> 00:23:02.200 somebody at this at this juncture, Your Honor. 00:23:03.599 --> 00:23:06.180 Your Honor, just may I respond briefly? Yes, 00:23:06.200 --> 00:23:08.880 Your Honor. The declaration has been on the docket 00:23:08.880 --> 00:23:14.099 since May 1st 2025. Debtors filed their motion. 00:23:23.139 --> 00:23:25.420 factual assertions in the declaration, to which 00:23:25.420 --> 00:23:27.960 they disagree. There's plenty of time, and perhaps 00:23:27.960 --> 00:23:32.859 a short cross. Well, I've got an objection to 00:23:32.859 --> 00:23:36.700 the declaration coming in, and it's an adequate 00:23:36.700 --> 00:23:40.660 statement, so you can put them on the stand, 00:23:40.759 --> 00:24:03.880 but I'm not gonna accept the declaration. He 00:24:03.880 --> 00:24:06.519 would say the declaration is admitted. Does that 00:24:06.519 --> 00:24:08.299 mean Mr. Griecher could make arguments based 00:24:08.299 --> 00:24:09.960 upon statements that remain in the declaration 00:24:09.960 --> 00:24:11.880 to the extent necessary? I'll take a break and 00:24:11.880 --> 00:24:14.539 let y 'all talk is what I'm going to do. We're 00:24:14.539 --> 00:27:08.759 in recess. Mr. Albuquerque's resolution in terms 00:27:08.759 --> 00:27:13.079 of introducing the declarations. The debtors 00:27:13.079 --> 00:27:15.819 will seek the introduction of the Stroum Declaration, 00:27:16.440 --> 00:27:18.259 as well as, Your Honor, we ask that the Court 00:27:18.259 --> 00:27:21.200 take judicial notice of the Chapter 11 petitions 00:27:21.200 --> 00:27:23.420 and the resolutions that are attached to them 00:27:23.420 --> 00:27:26.299 that are on the Court's docket. I think Mr. Moon 00:27:26.299 --> 00:27:29.660 may have some clarifying language in terms of 00:27:29.660 --> 00:27:32.220 the view as to the purposes for which the declarations 00:27:32.220 --> 00:27:37.119 will be admitted. It may seem like a piquing 00:27:37.119 --> 00:27:40.220 point, Your Honor, but I have no problem with 00:27:40.220 --> 00:27:43.059 proffer of his testimony that that was his declaration 00:27:43.059 --> 00:27:46.200 that he filed as a first -day motion with respect 00:27:46.200 --> 00:27:48.440 to his authority and all that. We're here on 00:27:48.440 --> 00:27:51.359 a motion to enforce an automatic stay with specific 00:27:51.359 --> 00:27:54.680 relief finding that Mr. Albor has violated that. 00:27:55.079 --> 00:27:57.380 That declaration does not speak in large part 00:27:57.380 --> 00:28:00.319 to any of that. So my only issue is, did he file 00:28:00.319 --> 00:28:02.759 that declaration? Yes, he did. I have no problem 00:28:02.759 --> 00:28:04.500 with that. That's what he says his corporate 00:28:04.500 --> 00:28:07.450 authority is. Your honor also understands, from 00:28:07.450 --> 00:28:11.529 the contrary, we dispute that. So, yes, he said 00:28:11.529 --> 00:28:13.609 that, and yes, he filed that declaration, but 00:28:13.609 --> 00:28:16.210 it's not really pertinent in large part with 00:28:16.210 --> 00:28:19.509 respect to the relief requested today. So, if 00:28:19.509 --> 00:28:21.450 you proffer that, I have no objection to that. 00:28:21.630 --> 00:28:23.750 He did file that declaration, and at some point, 00:28:23.829 --> 00:28:25.769 your honor will be able to look at that, assume 00:28:25.769 --> 00:28:27.970 that it's true, and hopefully you'll be able 00:28:27.970 --> 00:28:30.309 to look at stuff that was filed under penalty 00:28:30.309 --> 00:28:33.819 of perjury on our side and determine that. At 00:28:33.819 --> 00:28:35.240 the appropriate time as well with some of the 00:28:35.240 --> 00:28:36.539 documents that we have, Your Honor. That was 00:28:36.539 --> 00:28:39.519 my only point. Okay, thank you. It's admitted 00:28:39.519 --> 00:28:42.579 with that discussion. Thank you, Your Honor. 00:28:43.640 --> 00:28:48.759 Next, the debtors will seek to introduce and 00:28:48.759 --> 00:28:52.099 admit the declaration of Mr. Wagstaff. Your Honor, 00:28:52.299 --> 00:28:56.339 it was filed as Exhibit B to the Debtors Stay 00:28:56.339 --> 00:29:34.759 Enforcement Motion. The declaration of mr. Waxf 00:29:34.759 --> 00:29:39.559 references and lays the foundation for what has 00:29:39.559 --> 00:29:43.019 been identified as debtors exhibits three to 00:29:43.019 --> 00:29:48.160 eight in the binder. Let me just through the 00:29:48.160 --> 00:29:50.460 declaration seek the introduction of those documents 00:29:50.460 --> 00:30:11.539 into the record. If necessary, I can offer a 00:30:11.539 --> 00:30:16.220 short proffer about the documents that are at 00:30:16.220 --> 00:30:20.819 tabs 14A through D. Your honor, these are letters 00:30:20.819 --> 00:30:24.380 that Mr. Waxf received in his capacity as the 00:30:24.380 --> 00:30:27.039 debtor's chief restructuring officer. They're 00:30:27.039 --> 00:30:29.700 letters sent or emails sent by or on behalf of 00:30:29.700 --> 00:30:34.140 Mr. Albor or council representing him. We just 00:30:34.140 --> 00:30:46.410 seek to introduce those documents. Lastly, Your 00:30:46.410 --> 00:30:49.650 Honor, for the debtor's evidentiary presentation, 00:30:50.170 --> 00:30:54.390 we seek to admit the declaration of Mr. Reyes 00:30:54.390 --> 00:31:37.359 Escondon, which was docket number 91. There's 00:31:37.359 --> 00:31:45.920 evidence. OK. Mr Moon, I take it you have nothing 00:31:45.920 --> 00:31:49.119 evidence. Just just my verified responses. They 00:31:49.119 --> 00:31:51.000 are declarations under penalty of perjury of 00:31:51.000 --> 00:31:52.799 the laws of the United States of America, Your 00:31:52.799 --> 00:31:57.380 Honor. I think in terms of the verified response, 00:31:57.720 --> 00:32:01.779 we do object. It's it's not like a declaration 00:32:01.779 --> 00:32:04.940 where there's identifiable facts. It's it's law 00:32:04.940 --> 00:32:18.069 and facts next. So as of right now, it's just. 00:32:18.269 --> 00:32:21.109 Someone signed a one page slip of paper and representing 00:32:21.109 --> 00:32:24.089 that everything stated in the response is true. 00:32:24.490 --> 00:32:26.910 Law and facts. We just think that at the very 00:32:26.910 --> 00:32:28.930 least you should have been on zoom. You should 00:32:28.930 --> 00:32:31.150 have been here. All our all the debtors witnesses 00:32:31.150 --> 00:32:34.210 are here, so we just object. To the court taking 00:32:34.210 --> 00:32:37.750 in. response is evidence because it's not evidence. 00:33:06.089 --> 00:33:08.109 Let's get sure who was going to be attending. 00:33:08.309 --> 00:33:15.690 I just figured I'd see them on Zoom. Yes, we 00:33:15.690 --> 00:33:21.230 are here. Mr. Barajas is also on the call. Thank 00:33:21.230 --> 00:33:35.130 you, Alejandro. I'm going to consider the verified 00:33:35.369 --> 00:33:39.789 response, admitted with respect to facts that 00:33:39.789 --> 00:33:49.470 are in it, not legal argument. I'm doing that 00:33:49.470 --> 00:33:53.190 because obviously this was a short notice hearing, 00:33:54.769 --> 00:33:57.569 and given that everything's coming in by declaration, 00:33:58.789 --> 00:34:06.180 I think it's appropriate and fair. Is he available 00:34:06.180 --> 00:34:08.039 for cross -examination to the extent the debtors 00:34:08.039 --> 00:34:11.039 wish to do that? Do you wish to? I'd have to 00:34:11.039 --> 00:35:01.480 confer with counsel. Okay, well, confer. We're 00:35:01.480 --> 00:35:04.619 going to recess for 10 minutes and you can ask. 00:36:18.860 --> 00:36:21.980 Your honor, Sean Greacher from Yonkanawe. Thanks 00:36:21.980 --> 00:36:26.059 for giving us some time this morning to figure 00:36:26.059 --> 00:36:30.559 things out. I think we've agreed on a path forward 00:36:30.559 --> 00:36:33.920 for this hearing and also the hearing that is 00:36:33.920 --> 00:36:39.119 scheduled for next week on the Section 542E order. 00:36:41.280 --> 00:36:46.119 Parties intend to proceed with depositions of 00:36:46.119 --> 00:36:49.429 the various witnesses. Those depositions will 00:36:49.429 --> 00:36:52.130 take place in person in lovely Miami, Florida 00:36:52.130 --> 00:36:58.550 on the week of the 12th to the 15th. The next 00:36:58.550 --> 00:37:01.710 week, the week of the 19th, we would ask for 00:37:01.710 --> 00:37:04.409 your honor to take a look at the calendar and 00:37:04.409 --> 00:37:06.630 find out when everyone could be in lovely Wilmington, 00:37:06.769 --> 00:37:10.210 Delaware, with again, witnesses appearing in 00:37:10.210 --> 00:38:31.219 person to. So, is the idea that we will continue 00:38:31.219 --> 00:38:34.719 this hearing, we'll continue the hearing next 00:38:34.719 --> 00:38:40.539 week, and in the meantime, is there some agreement 00:38:40.539 --> 00:38:45.760 on any kind of necessary access to documents? 00:38:46.820 --> 00:38:49.159 I was going to get there, Your Honor. Obviously, 00:38:50.619 --> 00:38:53.420 the debtors have a very different view of the 00:38:53.420 --> 00:38:57.639 status quo and the implications of that. We will 00:38:57.639 --> 00:39:01.980 take up council, Mr. Elbor's council on the offer 00:39:01.980 --> 00:39:05.539 and proposal to provide necessary documents and 00:39:05.539 --> 00:39:09.519 information. We'll work with the Riverong team 00:39:09.519 --> 00:39:15.559 to assemble that list. Just to off the top of 00:39:15.559 --> 00:39:18.260 the head, the one piece of information that we 00:39:18.260 --> 00:39:22.559 would ask for in particular is information regarding. 00:39:26.519 --> 00:39:31.980 period, obviously, our view is that there is 00:39:31.980 --> 00:39:35.460 not a meeting of the minds, and obviously we 00:39:35.460 --> 00:39:39.780 need court intervention to help resolve it, but 00:39:39.780 --> 00:39:41.960 we certainly don't want to be in a position where, 00:39:42.239 --> 00:39:46.239 to the extent our position is successful, that 00:39:50.760 --> 00:39:52.559 Are the funds that you're talking about, are 00:39:52.559 --> 00:39:54.579 they park receipts? What are they? What are the 00:39:54.579 --> 00:40:00.659 funds? They would be park receipts related to 00:40:00.659 --> 00:40:05.340 visitors who are attending the parks. As we understand 00:40:05.340 --> 00:40:11.239 it, the company was likely in a cash positive 00:40:11.239 --> 00:40:22.780 position over the past year. the accounts and 00:40:22.780 --> 00:40:28.000 so again not asking for parties to surrender 00:40:28.000 --> 00:40:30.199 any of their substantive rights we're just simply 00:40:30.199 --> 00:40:35.159 asking for the information obviously I'm putting 00:40:35.159 --> 00:40:37.420 Mr. Moon on the spot with respect to that request 00:40:37.420 --> 00:40:39.719 but there will be a handful of other requests 00:40:39.719 --> 00:40:42.639 that we will work with him to make sure that 00:40:42.639 --> 00:40:54.949 we understand what's going on over the next Mr. 00:40:55.070 --> 00:40:58.329 Albor is on the Zoom. He's at the back of the 00:40:58.329 --> 00:41:00.610 boardroom that you see there. His camera zooms 00:41:00.610 --> 00:41:02.230 in on him, I guess, when he talks, but he is 00:41:02.230 --> 00:41:06.769 here. And he does respect this court. The issue 00:41:06.769 --> 00:41:08.289 that we're trying to work out, Your Honor, just 00:41:08.289 --> 00:41:11.269 from our perspective is we have to be very careful 00:41:11.269 --> 00:41:14.090 with respect to the jurisdiction of Mexican courts 00:41:14.090 --> 00:41:18.269 and what he can agree to. Not that he doesn't 00:41:18.269 --> 00:41:20.690 want to or wants to be cooperative. He's going 00:41:20.690 --> 00:41:23.230 to definitely try to be, as I was directed to 00:41:23.230 --> 00:41:24.630 do as soon as I got into the case, Your Honor. 00:41:24.679 --> 00:41:26.059 So we just wanted to make that representation. 00:41:26.400 --> 00:41:28.840 Okay, well I'm hoping there's a sharing of at 00:41:28.840 --> 00:41:37.719 least information so that whoever is in actuality 00:41:37.719 --> 00:41:42.300 controlling day to day has what they need to 00:41:42.300 --> 00:41:45.519 ensure that the animals are being taken care 00:41:45.519 --> 00:41:50.300 of and the people are being paid for their work. 00:41:50.510 --> 00:41:54.190 and other operational matters are being resolved 00:41:54.190 --> 00:41:58.849 while the management governance dispute is out 00:41:58.849 --> 00:42:09.269 there. And I recognize that may mean that that 00:42:09.269 --> 00:42:12.789 split, that whoever is actually on the ground 00:42:12.789 --> 00:42:19.849 handling things is split. Some is the debtor's 00:42:19.849 --> 00:42:29.349 team. And some is, and particularly, I guess, 00:42:29.449 --> 00:42:33.190 in Mexico is Mr. Albert's team. So we need to 00:42:33.190 --> 00:42:36.909 make certain that notwithstanding the governance 00:42:36.909 --> 00:42:44.949 issues, that regulatory concerns, safety concerns, 00:42:45.349 --> 00:42:48.730 people are being paid. But I would hope information 00:42:48.730 --> 00:42:58.110 could flow. And that there wouldn't be a violation 00:42:58.110 --> 00:43:01.889 of any order that's been entered in Mexico to 00:43:01.889 --> 00:43:07.369 share information. So thank you. Thank you, Your 00:43:07.369 --> 00:43:11.190 Honor. Good afternoon, Your Honor. Paul Keenan 00:43:11.190 --> 00:43:14.550 from Baker McKenzie on behalf of the Prudential 00:43:14.550 --> 00:43:17.150 Insurance Company of America, Prudential Legacy 00:43:17.150 --> 00:43:20.340 Insurance Company of New Jersey. at Cigna Health 00:43:20.340 --> 00:43:23.320 and Life Insurance Company, which I'll just refer 00:43:23.320 --> 00:43:27.340 to as the first lien lenders. The first lien 00:43:27.340 --> 00:43:30.420 lenders are happy and pleased that the court 00:43:30.420 --> 00:43:33.480 has set a schedule for depositions and for continuation 00:43:33.480 --> 00:43:36.840 of this hearing. I'd be remiss if I did not inform 00:43:36.840 --> 00:43:39.119 the court that the first lien lenders do have 00:43:39.119 --> 00:43:48.989 grave concerns. The first lien and second lien 00:43:48.989 --> 00:43:51.369 debt total amount outstanding at this point is 00:43:51.369 --> 00:43:55.570 approximately $225 million. The debtors have 00:43:55.570 --> 00:43:59.969 been payment default for well over a year. The 00:43:59.969 --> 00:44:02.090 debtors have not provided the required financial 00:44:02.090 --> 00:44:05.250 reports under the documents since the fourth 00:44:05.250 --> 00:44:10.050 quarter of 2023. As Debtors Council mentioned, 00:44:10.150 --> 00:44:12.389 the last couple of weeks were very busy weeks. 00:44:17.710 --> 00:44:20.250 Debtors are flush with cash at this moment in 00:44:20.250 --> 00:44:23.590 Mexico. And the debtor's view, excuse me, the 00:44:23.590 --> 00:44:25.690 secured lender's view is that that is our clash 00:44:25.690 --> 00:44:32.429 collateral. So we would be very keen and insist, 00:44:32.570 --> 00:44:35.230 quite frankly, upon some kind of transparency 00:44:35.230 --> 00:44:38.690 as to the use of cash during this interim period 00:44:38.690 --> 00:44:43.510 so that if the court does rule in the debtor's 00:44:43.510 --> 00:45:01.179 favor, there can be some accounting of sending 00:45:01.179 --> 00:45:03.639 the reports they're required to under the loan 00:45:03.639 --> 00:45:06.559 agreement. We can't see how that could possibly 00:45:06.559 --> 00:45:09.300 violate anything. They are part of the loan agreement 00:45:09.300 --> 00:45:11.860 and the lenders are entitled to the reports that 00:45:11.860 --> 00:45:13.820 they've been denied for over a year. So that'll 00:45:13.820 --> 00:45:16.739 be part of our request over these two weeks. 00:45:16.980 --> 00:45:23.440 Okay. Thank you. Okay. I need another minute 00:45:23.440 --> 00:45:26.599 now to see when I can fit you in. So we're in 00:45:26.599 --> 00:47:01.690 recess. Council for the reasons that we set forth 00:47:01.690 --> 00:47:05.710 in the motion, and I guess you've gotten the 00:47:05.710 --> 00:47:09.269 flavor of today. Our Mexican Council are working 00:47:09.269 --> 00:47:12.670 extremely hard to address various issues that 00:47:12.670 --> 00:47:17.809 have arisen and continue to arise in Mexico in 00:47:17.809 --> 00:47:22.429 recognition of that and in recognition of the 00:47:22.429 --> 00:47:33.440 significant departure from exposed to in the 00:47:33.440 --> 00:47:35.599 United States Bankruptcy Court. We've requested 00:47:35.599 --> 00:47:39.139 authority to pay advance retainers to those firms. 00:47:40.739 --> 00:47:44.519 We did speak with Mr. Hackman. He did provide 00:47:44.519 --> 00:48:10.389 one revision to the form of order. upon receipt 00:48:10.389 --> 00:48:13.309 in any amounts funded pursuant to the order shall 00:48:13.309 --> 00:48:15.429 be subject to clawback in the event Mexican Council's 00:48:15.429 --> 00:48:17.710 retention is not approved in the Chapter 11 cases. 00:48:17.949 --> 00:48:19.909 With that, the U .S. Trustee was comfortable 00:48:19.909 --> 00:48:22.170 with this order and we would request that it 00:48:22.170 --> 00:48:27.110 be entered. Okay. Anyone wish to be heard? I 00:48:27.110 --> 00:48:29.110 hear no one. I've reviewed it. I think the change 00:48:29.110 --> 00:48:32.710 is appropriate. If you upload that revised order, 00:48:32.730 --> 00:48:36.190 I will sign it. We will, Your Honor. Nothing 00:48:36.190 --> 00:48:37.570 further from the debtors today, but thank you 00:48:37.570 --> 00:48:40.000 very much for your time. Thank you. We're adjourned.