Doral dives 20% after failing to reach deal with Treasury

Doral Financial (NYSE:DRL) and the Puerto Rico Treasury Department have been unable to reach a settlement and negotiations have ceased. The case is scheduled for trial on September 16-18.

Previously: Doral Financial on the move ahead of hoped-for settlement

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Comments (3)
  • martin82
    , contributor
    Comments (7) | Send Message
    If you read the last 5 SEC filings, you can see that the court ruled that the Puerto Rico Treasury has the burden of proof to show that their allegations of fraud in the previous settlement for $229m (>$35/sh !!) are true. The judge in the case supervised two weeks of negotiations so now knows the case in detail.


    I suspect the Treasury wanted DRL to take a significant haircut and DRL has taken the all or nothing approach.
    26 Aug 2014, 09:12 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11387) | Send Message
    How can Doral avoid bankruptcy now?
    26 Aug 2014, 09:29 AM Reply Like
  • martin82
    , contributor
    Comments (7) | Send Message
    Bank has assets of $6.6B, doesn't seem to be out of cash despite having poor earnings. Only 6.6m shs out. Sold some mortgages for $330m in July. Pressure from Fed Reserve on whether to count the $229m in the lawsuit as an asset or not.
    26 Aug 2014, 10:12 AM Reply Like
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