Doral Financial, unsecured creditors committee file Chapter 11 plan

By Caroline Salls

Pittsburgh, April 28 – Doral Financial Corp. and its official committee of unsecured creditors filed a joint plan of reorganization and related disclosure statement Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the plan calls for Doral to be reorganized to preserve potentially valuable tax attributes and to liquidate its other remaining assets.

Holders of general unsecured claims will receive a share of cash available for distribution and a share of interest in a creditors’ trust, which will entitle holders to further distributions.

All existing equity interests and intercompany claims will be extinguished and cancelled under the plan.

Administrative claims, priority tax claims and other priority claims will be paid in full in cash.

Secured claims will either be paid in full in cash or holders will receive the collateral securing the claim.

Doral is a holding company based in San Juan, Puerto Rico. The company filed for bankruptcy on March 11, 2015 under Chapter 11 case number 15-10573.

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