Raising the stakes in bankruptcy court, Miami-Dade County says the financially struggling Miami Seaquarium’s lease needs to be canceled so new homes can be found for dolphins, sea lions, seals and other animals.
County lawyers are pressing for a swift decision, saying the park’s new owners don’t have the financial means to care for animals because they are battling with former Dolphin Company CEO Eduardo Albor over control of the international network of marine tourist attractions.
“The County has been incredibly patient with the debtors and their new management while the debtors fight with Eduardo Albor over the corporate governance,” wrote attorneys Eric Sutty and Ileana Cruz. “The debtors have not filed a plan of reorganization…or shown any viable path forward that would require continued operation of the Seaquarium.”
The County’s demand will receive its first hearing on Wednesday, where it is formally opposing an extension of the July 29 lease deadline in a hearing before U.S. Bankruptcy Court Judge Laurie Selber Silverstein.
The new owners, called the “debtors” in court papers, are seeking a three-month deadline extension so they can design an international sales process among 30 marine parks. But the County says the Seaquarium cannot be made into a viable business again and that taxpayers shouldn’t be forced to wait while a battle in Mexican courts is resolved.
“These disputes with Mr. Albor have distracted the debtors, turning their attention away from the Seaquarium, and forcing the County to sit idly by while the debtors hold the park captive,” the County’s pleadings say.
Judge Silverstein has already found Albor in contempt and has imposed $10,000-a-day fine. Albor’s lawyers say their client is exercising his rights under the laws of Mexico, where most of the Dolphin Company’s parks operate. The new owners are expected to ask for more sanctions against Albor and possibly other persons at Wednesday’s hearing. They have alleged Albor has diverted funds from Mexican parks.
But for the County, the fight with Albor is just the latest reason why swift action is needed as the aging Seaquarium — once home to the 1960s TV show “Flipper” — needs to be separated out from the other properties.
In the 34-page motion, the County said Riveron, the company chosen to reorganize the Dolphin Company, has stayed silent on its plans for the 38 acres of County-owned parkland, which it said cannot be developed into non-park uses under the County Charter. Miami-Dade Mayor Daniella Levine Cava has said she does not envision a rebirth of the park, which has been operating on Virginia Key since the 1950s.
“There has not been any movement by Riveron to address the outstanding notices of violations related to the unsafe structural issues,” the County wrote.
The Chapter 11 bankruptcy process is designed to let companies reorganize so they can stay in business, but the County’s motion cast doubt on commercial viability given Seaquarium’s financial filings. The County said expenses continue to outstrip income — and that the reorganized company would actually be better off without the Seaquarium.
Lawyers also say that because Miami-Dade terminated the Seaquarium lease seven months before the bankruptcy filing, the lease is no longer an “asset” and that Judge Silverstein should simply let Florida courts go forward with eviction proceedings.
And finally, it asks that if the court won’t take any of those steps, it should at least order a performance deadline on animal safety grounds.
“The County requests this Court compel the Debtors to remove all marine mammals, fish and other animals from the Park by a date certain to prevent further harm and injury.”
There has as yet been no response to Miami-Dade’s court filings from the new management team.
This story was originally published in the Key Biscayne Independent, a WLRN News partner.
