Boston, MA 09/11/2014 (wallstreetpr) – Doral Financial Corp. (NYSE:DRL) announced the assets sale which will result in proceeds of around $423 million to Doral Bank. DRL is the financial services holding firm of Doral Bank. The assets sale is as per plan of the company under which it will enter into asset sale transaction for generating funds. The proceeds from the asset sale will be used for restructuring of the company.
The details
Asset sale transactions will help Doral Financial Corp. (NYSE:DRL) to execute its restructuring plans without taking any risks. It will further enhance the liquidity and will preserve capital for future operations. Doral’s stock price has declined by more than 50% in this year.
A wholly-owned subsidiary of DRL, Abbey Depositor Inc. completed the sale of an aggregate principal proceeds of about $429.35 million related with its mortgage pass-through certificates to global firm Barclays PLC (ADR) (NYSE:BCS). It was as per the purchase agreement done last week on September 5, 2014, between Barclays, Doral Bank and Abbey Depositor.
The performance
Before moving ahead, it is essential to look back at past performance of Doral Financial. It has stayed a volatile stock with a beta of 2.7. Last month, Doral Financials announced that it was unable to find a solution to ongoing tax problems with Puerto Rico’s Treasury Department. It further added that Doral Financial Corp. (NYSE:DRL) will go to court with the Treasury Department in order for suit settlement.
The proceedings are expected to take place from September 16 to September 18, and therefore Doral Financial Corp. (NYSE:DRL) will stay in focus. Doral filed the case in the anticipation of getting a favorable ruling which will result in $229 million of funds owed from a closing agreement done in 2012. Investors are getting wary about the suit and it is reflected in the stock price of Doral that has dipped by more than 17% since August 26. Before decline,
