Doral Financial files for Chapter 11 bankruptcy

(Reuters) – Doral Financial Corp filed for voluntary Chapter 11 bankruptcy protection on Wednesday, saying it intends to wind down its businesses, liquidate its assets, and seek approval for a liquidation plan.

Doral Financial Corp (DFC), which has retail banking operations in Puerto Rico and the United States, listed assets of $50 million to $100 million and liabilities of $100 million to $500 million.

DFC said its subsidiaries – Doral Insurance Agency LLC, Doral Recovery Inc, and Doral Properties Inc, have not filed for bankruptcy protection.

Doral was put under operating restrictions last month after being told by the U.S. Federal Deposit Insurance Corp (FDIC) in January that a plan it submitted to restore its capital was not acceptable.

Doral has also been under pressure in a lengthy fight with Peurto Rico about a $229 million tax refund. It lost an appeals court ruling to grant the lender the refund.

The case is in the Southern District Of New York; case no: 15-10573-scc.

(Reporting by Shivam Srivastava in Bengaluru; Editing by Anupama Dwivedi)