Doral creditor committee looks to hire legal and financial adviser

By Kali Hays

New York, May 26 – Doral Financial Corp.’s official committee of unsecured creditors is seeking authorization to hire Schulte Roth & Zabel LLP as its legal counsel and Capstone Advisory Group, LLC as its financial adviser, according to separate motions filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

If approved, the hiring of Schulte Roth will be made retroactive to March 23 and that of Capstone to March 26.

Schulte Roth will provide general oversight to and investigate the business affairs of Doral on behalf of the committee, participate in the formulation of any plan, negotiate any sale transactions, serve as a point of contact for creditors and represent the committee in court as necessary, according to a motion.

The firm agreed to a 10% reduction of its standard hourly billing rates for attorneys and partners, which range between $335 and $1,155.

As the committee’s financial adviser, Capstone will monitor the auction and sale process related to any Doral assets, provide monthly reports on the company’s liquidity and use of debtor-in-possession financing, assist in the analysis of the company’s operations, prepare valuation analysis upon request and appear in negotiations and in court as necessary, according to a motion.

Capstone agreed to a 20% discount of its standard hourly rates for its staff, which range between $250 and $895.

A hearing to consider the hirings is set for June 16.

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

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