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The company claims in a lawsuit against the Puerto Rican government that the territory could lose "a major lender in the Puerto Rico housing market" if it is denied a $230 million tax refund.
June 5 -
The Puerto Rican company is looking to shore up its capital levels after the FDIC invalidated about 40% of its Tier 1 capital. Management will have plenty of challenges as it looks to fill the capital hole.
May 20 -
First BanCorp (FBP) in San Juan, Puerto Rico, has resolved a large outstanding loan to Doral Financial (DRL) by taking on $242 million on mortgages that were used as collateral for the loan.
June 3
Doral Financial's (DRL) dispute with the Puerto Rican government over a tax refund will be heard on an expedited basis by the territory's courts.
Puerto Rico's Supreme Court has agreed to an expedited process for the Court of First Instance to hear the $7.8 billion-asset Doral's
"We welcome the Puerto Rico Supreme Court's decisive action today," Glen Wakeman, Doral's chief executive, said in a press release Friday. "Doral is committed to pursuing its legal rights in this matter, and we invite the government of Puerto Rico to join us at the negotiating table so that we can resolve this issue and move forward."
The San Juan, Puerto Rico, company filed the lawsuit last week after the territory's Treasury Department
The Puerto Rican Treasury Department claims the agreement is null for several reasons, including that it is barred by statute of limitations.
Doral is facing a capital shortage after the Federal Deposit Insurance Corp. ruled that it could no longer count the Puerto Rican tax receivables towards it Tier 1 capital. The Federal Reserve Board has also ruled that Doral must classify the tax receivable agreement as a loss and write off the asset on its balance sheet.
