Boston, MA 06/19/2014 (wallstreetpr) –
Doral Financial Corp. (NYSE:DRL) opted to file papers on June 18, appealing against a decision taken by Puerto Rico’s Court Of First Instance and asked the Honorable Puerto Rico Supreme Court to righteously assume jurisdiction of DRL’s appeal.
The Cause Of DRL’s Agony!
Matthew McGill, DRL’s counsel and a partner with the eminent Gibson, Dunn & Crutcher commented that the Department of Treasury decided to unanimously nullify the company’s binding agreement with the DoT, thus causing consequently enormous harms to DRL. He also added that the consequent possibility that DRL might have to defend the laid-out agreement forcefully, in the DoT’s administrative process, would risk harm furthermore.
McGill added that DRL is entitled to seek for a court’s review in this case, and would not settle on DoT’s reviews that dubs the agreement as ‘null’. The entire DRL management and the company’s counsel McGill are hopeful of having these pangs alleviated, and hopes that the Supreme Court would correct the errors committed by the Court Of First Instance, promptly and undisputedly, such that the final binding agreement is upheld and a conclusion is reached promptly.
On May 26 2012, DRL had entered into an agreement with DoT, in which both parties had conclusively inferred upon claiming approximate deductions of $766 million over the next 11 years, consequent to sumptuous tax over-payment amounting to $229 million.
The Crux Of The Matter
The chalked out agreement was decisive and binding and hence could not be unduly reopened, modified, annulled, disregarded or set aside, unless certain specific conditions were satisfied. However, the crux of the matter and dissidence emerged when DoT declared the agreement as ‘null’ and refused to refund DRL’s overpayment.
Previously, DRL had expressed considerable concerns over retaliation by a myriad of state agencies in the light of pursuing the company’s rights, to enforce this 2012 agreement with the Department of Treasury.
The investors are eyeing surmounting tensions over the purported catch 22 between DRL and the DoT authorities, which might only be resolved in a matter of some time! Eventually, this has resulted in voluminous trade activities coupled with a falling share price.