Doral Financial’s Amended Joint Plan of Reorganization (proposed by the Company and its official committee of unsecured creditors) became effective, and the Company emerged from Chapter 11 protection.
The Court confirmed the Plan on August 10, 2016. Concurrent with that order, the Court also issued an order confirming the separate Chapter 11 Plan of Liquidation for Doral Properties; however, the docket does not indicate a notice of effective date for that Plan.
The following will occur under Doral Financial’s now-effective Plan Under the Doral Financial Corporation Plan: (1) General Unsecured Claims will receive its pro rata share of the Initial Class 2 Cash Pool and be deemed to receive its pro rata share of the Creditors’ Trust Interests, for a 32% – 41% rate of recovery. (2) Subordinated Claims will not receive any distribution pursuant to the Plan or retain any property or interest on account of such Claims. (3) Equity Interests will not receive any distribution pursuant to the Plan or retain any property or interest on account of such Equity Interests.
This bank holding company (d/b/a Doral Financial Puerto Rico Corporation) filed for Chapter 11 protection on March 11, 2015, listing $8.5 billion in pre-petition assets.