American Banker quoted Manatt's Craig Miller, co-chair of the firm's Financial Services and Banking practice, for an article about the lawsuit that Doral Financial has filed against Puerto Rico.
As reported by American Banker, Doral claims the Puerto Rican government unlawfully voided an agreement to return taxes the company alleges it overpaid. Puerto Rico's Treasury Department has defended its decision to deny the refund.
It is unclear how long it could take for Doral to recover the funds through legal channels, said Miller. Doral could look to settle for less than what it thinks it is entitled, Miller says, which could still help if management tries to raise capital elsewhere.
"It is a hard-hitting strategy but litigation can be an effective strategy," Miller says. "Clearly they have taken a position that they are owed this money in its entirety, and they are willing to take all steps to get it."