Manatt Financial Services Co-Chair Interviewed on Doral's Situation in Puerto Rico

Doral's Future Remains Unclear Despite Key Legal Victory
– American Banker

Manatt's Craig Miller, co-chair of the firm's Financial Services and Banking practice, was interviewed by American Banker for an article on Doral Financial's uncertain future in San Juan, Puerto Rico, despite prevailing in a legal dispute over a $230 million tax refund.

American Banker reports that Puerto Rico's Court of First Instance recently affirmed that the Puerto Rican government must pay Doral a refund for overpaid taxes over the next five years. The FDIC determined earlier this year that Doral could no longer count the funds toward its Tier 1 capital calculation, demanding that the company develop a plan to address the issue. Doral has since been selling off assets and looking at other options to shore up capital.

Since the Puerto Rican government is expected to appeal the decision, it is unlikely that the FDIC will immediately reverse course and allow Doral to count the funds towards its capital, said Miller. A final resolution could be months off.

Read the article here



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