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A judge's ruling that Doral is owed $230 million by the territory's government may not immediately change its status as "significantly undercapitalized."
October 14 -
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
Doral Financial in San Juan, Puerto Rico, has provided the Federal Deposit Insurance Corp. with its capital restoration and contingency plans.
The $8 billion-asset company is currently listed as "significantly undercapitalized" after the Puerto Rican Treasury Department rejected the company's claim to a $230 million tax refund. The FDIC decided that Doral couldn't count the money as part of its Tier 1 capital, putting it in violation of a 2012 consent order and requiring it to improve its capital levels.
The FDIC had been hounding Doral to turn in the written plans.
Doral disclosed in a regulatory filing that it submitted the plans on Wednesday, though the company did not provide further details.
The company has been selling assets, including a health care lending division, to boost capital levels. It also recently won a key legal victory with a Puerto Rican court ruling that the government must pay the tax refund. However, the territory's Treasury Department has vowed to appeal the decision.
