Manatt's Craig Miller, co-chair of the firm's Financial Services and Banking practice, spoke to Debtwire for an article on Doral Financial Corporation's pending suit against Puerto Rico.
Debtwire reports that the suit alleges Puerto Rico owes Doral nearly $230 million for tax overpayments. Although the verdict is likely to be decided in the near future, industry insiders think it won't be the final word.
No matter the verdict, both sides are likely to appeal or continue negotiating, said Miller. And if Doral wins, it's an open question whether the Federal Deposit Insurance Corporation will allow Doral to count the full settlement toward its Tier I capital, he said.