Doral Financial Corp. filed for chapter 11 protection yesterday, saying that it intends to wind down its businesses, liquidate its assets, and seek approval for a liquidation plan, Reuters reported yesterday. DFC, which has retail banking operations in Puerto Rico and the U.S., listed assets of $50 million to $100 million and liabilities of $100 million to $500 million.
Puerto Rico in Distress
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Puerto Rico's debt-laden power authority, Prepa, said on Friday that it will hold off on presenting a restructuring plan as it tries to secure an extension of an agreement from creditors not to foreclose on its $9 billion in debt, Reuters reported.
A bill to give Puerto Rico's ailing public utilities a way to restructure debt under the U.S. Bankruptcy Code drew skepticism from congressional Republicans but support from Democrats, who said that it would relieve the island's problems, Reuters reported yesterday.
A proposed bill to give Puerto Rico's ailing public agencies a way to restructure debts under U.S. bankruptcy law is a "Wild West" solution that would likely hurt bondholders, an adviser for major investors argued in written testimony ahead of a key congressional committee, Reuters reported today.