Doral Extends Gains; Tax Case Remanded To Lower Court
Doral Financial (NYSE: DRL) extended big earlier gains in pre-market action Thursday stemming from a favorable court decision in a tax $229 million dispute.
Puerto Rico's Supreme Court on Wednesday reversed a lower court's decision that it lacked jurisdiction to hear the case. The lower court had been sympathetic to Doral's complaint, but said it lacked authority.
Doral, a bank holding company with market capitalization of $47 million, obtained an agreement with the Puerto Rico Department of Treasury, or Hacienda, in 2012 that the the bank was owed $229 million tax refund.
In May, however, Hacienda backed out of the deal and Doral went to court.
Doral had relied on the pending refund for its revised capital plan intended to comply with federal requirements.
In pre-market trading, Doral changed hands recently at $8.80, up 24.47 percent. The shares closed up 75 percent on Wednesday.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.