Doral Financial (DRL) in San Juan, Puerto Rico, has agreed to sell roughly $825 million of assets to Abbey Finance Holdings PR.
The $7.8 billion-asset Doral said in a regulatory filing Monday that it will sell loans and foreclosed properties to Abbey for $369 million. The assets consist of roughly $624 million of residential mortgages and properties and about $201 million of commercial mortgages and properties.
Doral said the property values are based on outstanding principal balances as of April 30 or the most recent appraised value. Doral will continue to service the assets for an interim period.
Doral is embroiled in a legal battle with Puerto Rico's Treasury Department over claims the company is owed $230 million in overpaid taxes. Doral has warned that it could sell assets to shore up its Tier 1 capital levels after the Federal Deposit Insurance Corp. said it could no longer count Puerto Rican tax receivables to that capital ratio.