Doral Financial Issues Release Including New Statement on Legal Counsel Matthew McGill, Says Has Not Left Negotiations

 In response to recent developments in the negotiations between Doral Financial Corporation and the Puerto Rico Treasury Department, Matthew D. McGill of Gibson, Dunn and Crutcher issued the following statement: "Doral has not left the negotiations.  The Treasury Department attempted on Thursday to introduce into the negotiations so-called "business points" conceived by its new outside counsel, Foley & Lardner, that were contrary to the provisions of the agreement reached and sworn to by the parties in front of Judge Perez-Perez of the Court of the First Instance.  Foley & Lardner recently represented Doral in a related matter and that raises a conflict of interest.  It has a duty of loyalty to its client, Doral, from acting adversely to Doral.  For that reason, Doral sought guidance from Judge Perez-Perez as to how to proceed.  Judge Perez-Perez ruled that the parties will continue negotiations today under her supervision, without the participation of Foley & Lardner, and according to the terms previously agreed by the parties."