Doral Insurance asset sale procedures OK’d; lead bid $10.75 million

By Caroline Salls

Pittsburgh, April 9 – Doral Financial Corp. obtained court approval of the bid procedures for the proposed sale of its 100% equity interest in Doral Insurance Agency LLC or substantially all of Doral Insurance Agency’s assets, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Anglo-Puerto Rican Insurance Corp. is the stalking horse bidder. Anglo-Puerto Rican submitted a $10.75 million bid for substantially all of Doral Insurance’s assets, excluding rights in profit sharing agreements.

If Anglo-Puerto Rican is not the high bidder, it will receive a $250,000 break-up fee and reimbursement of up to $200,000 of its sale-related expenses.

Competing bids are due by noon ET on May 6 and must include a purchase price equal to a minimum of $10.75 million, subject to a price adjustment, the amount of the break-up fee and expense reimbursement and a $150,000 minimum overbid.

An auction will be held on May 12, if necessary. Bids at auction must be made in minimum increments of $100,000.

The sale hearing is scheduled for May 21.

The company said Doral Insurance is a wholly owned, non-debtor subsidiary that acts as an insurance agent primarily for customers of Doral Bank, which is in receivership.

Doral is a holding company based in San Juan, Puerto Rico. The company filed bankruptcy on March 11 under Chapter 11 case number 15-10573.

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