Dolphin Capital Investors Ltd on Tuesday said it refutes claims made by its former investment manager, Dolphin Capital Partners Ltd, in England’s High Court.

Further, DCP on Tuesday said ‘it strenuously refutes all allegations advanced by DCI.’

In March, the London-based investor in high-end resort developments in the eastern Mediterranean said it had terminated its investment management agreement with Dolphin Capital Partners Ltd. It had originally entered the agreement in December 1, 2021.

Dolphin Capital Investors also removed Miltos Kambourides as a board director. Kambourides is the co-founder & managing partner of DCP.

Dolphin Capital Investors said it learned that DCP ‘entered into an undisclosed option agreement with the purchaser of the Amanzoe resort in Porto Heli, Greece at the same time that the company sold its interest in the resort’ back in 2018. It said the option agreement entitled DCP to buy an additional 15% of DolphinCI Fourteen Ltd, the special purpose vehicle holding the Amanzoe resort. The undisclosed option agreement was additional to a separate agreement that had been disclosed for DCP to acquire 15% of DolphinCI Fourteen.

The undisclosed DCP agreement put Dolphin Capital Investors in breach of the listing rules of AIM, the company explained, and it will be self-reporting the breach to the London exchange.

‘The company is seeking to pursue all legal options to recover the value arising from the undisclosed option agreement that is the company’s property,’ Dolphin Capital Investors said. ‘The directors believe that this value could be material in the context of the size of the company, but at this time do not have enough information to put a precise quantum on this.’

On Tuesday, the company said that DCP has now filed a claim against Dolphin Capital Investors, alleging ‘repudiatory breach of contract by the company in relation to the termination by the company of the prior investment management agreement.’

‘The company considers the claim to be opportunistic and without merit and will be defending the claim vigorously and is preparing its own counterclaim,’ Dolphin Capital Investors said.

Also on Tuesday, DCP responded to Dolphin Capital Investors’ claims. DCP said it seeks a declaration that it was ‘never in breach of any of its duties towards DCI.’

‘In addition, DCP demands the full settlement of the outstanding and unpaid management fees

under the IMA, the fees that would have been payable to DCP had the IMA been properly

terminated on notice, losses caused to DCP‘s other investment management business by the

unlawful purported IMA termination, losses arising from harmful statements made by DCI and

its directors in respect of DCP’s actions and all other expenses in dealing with the IMA‘s

unlawful repudiation including legal costs,’ it said.

‘DCP no longer has faith in the ability of the current DCI directors to effectively and properly

manage the affairs of DCI and its subsidiaries in Greece, Cyprus and Croatia nor in their ability

to continue the smooth development of Kilada and the orderly divestment of the company’s

remaining asset portfolio.’

In Aptil, DCP claims to have sold all of its shares in Dolphin Capital and it now no longer retains any shareholding interest in the company. It previously held a 9.73% stake in the company.

Shares in Dolphin Capital Investors closed down 1.3% at 3.80 pence each in London on Tuesday.

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