Good morning, your honor Robert Brady on behalf
of leisure investments Holdings Inc Light agenda
today your honor, but I thought I'd start as
we have with a just a brief status conference
Last night we did file embassy of the seas as
a chapter 11 debtor. That's the United Kingdom
entity based in London It does sound like one.
But as we've indicated, we're continuing to complete
the corporate governance changes and implement
those throughout the organizational structure.
So we'll be sending over a certificate of counsel
for joint administration. And Your Honor, an
update on Mexico. One additional change since
the last hearing we had. The April 10 order,
Your Honor, you may recall during the hearing
and in the response filed by Mr. Albor, it was
repeatedly cited to as the base for this confusion
as to who might be the director of Control the
Door Dolphin. We can advise the court that on
April 30th that order was stayed by a federal
court in Mexico. So as we stand here today, there
is no order issued in Mexico that creates any
dispute that Mr. Strom is the sole director of
Control the Door Dolphin. And as we indicated
at the last hearing, Mr. Alvarez's own Mexican
council conceded that the resolution putting
Mr. Strom in place remains valid as of today.
So. Again, no dispute right now that Mr. Strom
is the sole director of Control Door at Dolphin.
Obviously, there is an automatic say in place
and a turnover order in place. And Your Honor
requested at the end of the last hearing that
information start to flow, at least be shared.
So after the hearing, we sent a list of priority
financial reporting items to counsel to Mr. Albor.
This was stuff we thought would be readily available
and easy to provide. And again, very much in
line with the reporting requirements under the
financing agreement, the note holder agreement.
So to date, we have not received a single document
from Mr. Albuvera, Control the Door Dolphin.
So we don't have any of the receipts from operations.
We don't know. If payroll has been paid, we don't
know if the animals are being cared for. Again,
the lenders have received no reporting for well
over a year or so. We did reach out to Mr. Moon
and request a status report on getting this information.
He indicated that the request is being taken
seriously, but there was no commitment by when
we would get any of this information. And he
did indicate. Mexican Council to make sure they
weren't violating any Mexican law or order by
sending us this agreement. We asked for a cite
to any Mexican law or any order that might prevent
them from sharing information from the conceited
sole director of Control the Door Dolphin and
we have not heard anything back. So I just want
to know for the record, Your Honor knows we did
agree to continue the emergency hearing briefly
to allow for depositions. But to be clear, the
debtor's position is each day is a continuing
violation of the automatic stay, a continuing
violation of the turnover order, and we reserve
all rights to seek appropriate remedies against
Mr. Albor and others for these violations. So
that is our status report. I did advise Mr. Moon
that we would be providing a status report to
the court at the start of today's hearing. If
I could be heard briefly Thank you, your honor.
So a couple of things Number one, this is the
first I've actually hearing about this April
30th order So if council could please provide
that to me, that would be great I haven't heard
anything from Mexico that that had been entered
and we would certainly like to see it Certainly
haven't heard that with respect to the information
exchange your honor. We got our we got the request
for documents on Wednesday And I simply asked
for debtors council to advise you since we don't
have anything on Today and I don't typically
show up for status conferences if I'm not involved
But they did say that they were going to mention
that no documents have been provided I will represent
to the court that immediately upon receiving
the request we sent it down To the client as
well as Mexican Council. We are taking it seriously
the issue that I also told them though is we
were informed that So that Thursday would have
been the next day when we had that request. That
was May Day. That's a holiday in Mexico. And
also today is a holiday as well because of Cinco
de Mayo. So I don't know who's down there to
provide documents. All I can tell you is that
we anticipate by midweek we'll have documents
available. Both Mexican council and myself are
pushing very hard to get this done. We certainly
respect the court. We certainly are consistent
with our request. List of the documents you need
what we will work on it and we are pushing it
hard your honor So I can't speak to what's actually
occurring in Mexico right now I can only tell
you both between Mexican Council and myself.
We were pushing it extremely hard Thank you.
I appreciate that But I would like to make sure
you inform your client that one animals don't
take holidays so I don't think people get to
take holidays when their welfare is at issue.
And two, to the extent that there's going to
be reference to law in Mexico that prohibits
the sharing of information, I will need some
citation to that. Because I'm not asking at the
moment, or at the moment, all that's being asked
for is sharing. And I can't even think of an
equivalent law in Delaware that would prohibit
a CEO from sharing information with anybody,
quite frankly, sharing information with anybody
that's relevant to the safety, welfare of animals
and the employees that work for a company which
he purports to be in charge of. I can't think
of a law that prohibits sharing of information.
So if that's going to be cited to me, I would
like case law, or whatever the equivalent Mexican
law is, statute case law, whatever, that would
prohibit. a simple sharing of information. So
please pass that along to your client and your
Mexican counsel. Thank you, Your Honor. And I
don't want to make too much of a point about
this, but really this is simply an issue with
respect to saying that we want to make sure no
Mexican court orders or law are violated. I am
not a Mexican lawyer. The issue that's occurring
at this point for production of documents is
the same that any lawyer would do, which is get
the documents compiled, and that's what we're
pushing for, review those documents with Mexican
counsel, and make sure that there's no issue
with turning it over. That's it. I'm not suggesting
that there is some law, but I will tell you this.
I made very clear that if there is a law, that
they better be very clear about what that is.
Your Honor, I am an officer of this court as
well. I will make sure that we provide any kind
of law if such exists. But really, at this point,
it's simply a matter of typical production, which
is lawyers look at what's being produced and
then we produce it. That's it. Okay. I think
in this instance, it needs to be on an expedited...
a hyper expedited, super expedited schedule.
Thank you. Thank you. Thank you, Your Honor.
We appreciate that. I think Mr. Gricher is going
to present the dip. Thank you. Mr. Gricher. Good
morning, Your Honor. Sean Gricher from Young
Conaway. Your Honor, thank you very much for
the review and sign off on various orders that
were scheduled for today. The only matter that
we did not submit with a form of order was the
final dip. We are obviously not here today asking
Your Honor to approve a final dip. As you heard,
we're still waiting to get full financial reporting
data for the overall organization to complete
a fully detailed 13 -week budget. Through River
On's efforts, working with the U .S.-based park
management, we have managed to assemble a budget
that relates to the U .S. park revenues and operational
expenses and we have been working with the lenders
on necessary amendments to the dip credit agreement
and working on that shorter term budget to include
as may be required with a further interim dip
order. While in the meantime we continue to pursue
the access to the necessary financial details
for the overall organization and in turn. So,
Your Honor, we have, as I said, reached agreements
to fund operations within the interim cap that
Your Honor previously approved. We expect that
we will have sign -off on the shorter -term budget
based upon the presently available information.
I understand that the principals are speaking
early this afternoon. The lenders have, if we
need it, prepared a form of a further interim
order itself. Assuming that we determine that
that is necessary to implement the amendments
in the shorter -term budget, you will find that
it will closely mirror very closely mirror the
existing interim order and we would propose to
submit that under certification of council. Of
course, Your Honor, making ourselves available
to Your Honor if there are any questions once
you've had the opportunity to review it. So,
Your Honor, that's where we stand. We continue
to work forward with the lenders in good faith
and arm in arm to make sure that we fund this
company and fund the operations for Your Honor.
is a key consideration, and we intend to move
forward as quickly as possible to move the revised
dip order in front of you. Okay, very good. Then
I will... Your Honor, may I be briefly heard?
Mr. Gold. Yes. Yes. Good morning, Your Honor.
Gold of Allen -Mackens for Keys Resort owner.
My client is the... owner of the Hawks Cave Resort
where the debtor had as the Dolphin Connect facility
down in the Florida Keys. My pro -Hawks on file
was filed Friday. That would sparse our local
council. I just want to be heard briefly on a
comment. The debtor is not ready to move forward
on a final. That is completely agreeable. We've
been in contact with the debtor. We acknowledge
that this case presents some unique challenges
in corporate governance and animal welfare has
been paramount. But if I may quote a now retired
partner of mine, we still have to block and tackle
in terms of the day -to -day operations of the
Chapter 11 case. Perhaps because of the corporate
governance issues and the records issues that
have predominated, we don't have a public budget
in this case. The DIP financing is somewhat unique
in that it provides the budget wasn't even to
be prepared until after the interim debt. It
had a 15 -day milestone, which has passed. The
U .S. budget has not been filed. It has not been
shared with us. According to the debtor, we are
the largest unsecured creditor in this case,
as evidenced by the top 30 list filed at DOC
at 77. And to put a chariot on top, We didn't
get rent for last month. The professionals in
this case are too experienced and too talented
to miss that stuff. You know, just because rent
is revenue based and payable in arrears doesn't
change the application of the law in this district
with respect to the performance date. We've been
told it's been forthcoming for over a week. These
are not good signs, Your Honor. And while we
support This debtor does not need to be strangled.
The interim use of cash collateral should be
permitted. There's work to do before we get to
a final, because the underpinnings of the operation
of the business, at least from our client's perspective,
and we are the largest unsecured creditor in
the case, are not moving in the customary linear
fashion we would expect. This case is not that
fresh anymore. It's over 30 days old. And these
things should be going a little smoother than
they are. I just wanted to express, since we're
doing the saddest thing, I just wanted to express
that concern to the court before we move forward.
Thank you. Thank you, Your Honor. We certainly...
Understand and note Mr. Gold's comments and constructive
criticism. We are of course working with him
to make sure that we get the obligations paid.
We do understand and as I mentioned, the intention
is to submit a further interim order as necessary
with a budget. So understand and appreciate that
this is not proceeding in a linear fashion. We
are doing what we can to put this on the straight
and narrow, of course, and we'll continue to
communicate with Mr. Gold to make sure that this
does proceed in an appropriate way and that the
obligations that come due post -petition are
paid on a timely basis. Thank you. Mr. Hackman,
where do we stand on a committee? the debtors
filed their top 30 list on April 22nd. We solicited
a committee. We sent the questionnaire and information
sheet to that top 30 list, the more fulsome list
once it was filed. We have spoken with some respondents,
and the U .S. trustee has committee appointment
under advisement. I don't know if he will appoint.
If he does, we could be in a position to do that
as early as today. But as soon as he makes that
decision, we'll file the notice of appointment
or non -appointment on the docket promptly. Thank
you for the status. Thank you, Your Honor. Okay,
anything else for today? Nothing further from
the better, Your Honor. Thank you. We're adjourned.