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Doral ruling in $229 mln dispute not expected before Oct. 8-judge
October 1, 2014 / 6:33 PM / 3 years ago

Doral ruling in $229 mln dispute not expected before Oct. 8-judge

SAN JUAN, Puerto Rico, Sept 30 (Reuters) - There will be no ruling in the $229 million tax dispute between the government of Puerto Rico and lender Doral Financial Corp before Oct. 8, Puerto Rico Superior Court Judge Laureana Perez said in an order issued on Wednesday.

At the close of the hearing last week, Perez ordered both sides to submit a memorandum of facts five days after receiving a transcript of the proceedings. The Puerto Rico Justice Department told the court Monday that it did not expect to receive the transcript until Thursday Oct. 2.

“From Oct. 8, after receiving the transcription and written submittals from the parties, the court will begin the evaluation process. Once the court completes this task it will proceed to dictate a ruling,” Perez wrote.

Last May, the Treasury Department voided a 2012 agreement that set a $229 million tax refund for Doral resulting from a restatement of earnings during from 1998 to 2005. Doral sued Puerto Rico in June.

Doral said in a filing on Wednesday that it had a received a second letter from the Federal Deposit Insurance Corporation (FDIC) in which the agency stated it had not received a required “capital restoration plan or the contingency plan, and that both plans must be submitted immediately.”

FDIC told Doral said in a letter earlier this year that it can no longer include the money it says it is owed by Puerto Rico in its Tier 1 capital, according to a filing posted by Doral in May.

Doral’s shares fell 9.8 percent to $5.99 on Wednesday. (Reporting by Reuters in San Juan; Editing by Chizu Nomiyama)

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