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Banking Financial District

Doral gets $181.3M cash boost from asset sale

Doral's dwindling capital levels are under the FDIC's watch. (Credit: © Mauricio Pascual)

Doral’s dwindling capital levels are under the FDIC’s watch. (Credit: © Mauricio Pascual)

Doral Bank, a wholly owned subsidiary of Doral Financial Corporation, announced Thursday the completion of the sale of of certain loans, advances, mortgages, and loan participation rights to WOMF REV, LLC, which will shore up $181.3 million in cash for the troubled financial institution.

The transaction closed Jan. 9, when the purchasing party paid an amount equal to 100.4 percent of the approximately $180.5 million unpaid principal balance of the assets.

This is the latest development for Doral, which has been dealing with liquidity issues that have drawn the attention of regulators, particularly the Federal Deposit Insurance Corp., which has bearing down on the bank for a plan to restructure its finances.

Earlier this week, the FDIC rejected a second proposal by the bank, which is counting on a $230 million refund from the government related to taxes it claims it overpaid. The matter has been in the hands of the courts for the past few months, during which the Puerto Rico Treasury Department lost its bid to have the matter nulled.

Doral has asked the court to enforce the payment and is awaiting a decision on its appeal.

Author Details
Author Details
Business reporter with 27 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other segments of Puerto Rico’s economy.

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