Doral Financial seeks court approval to sell mortgage loans, real estate

By Mark Reccek

Bethlehem, Pa., Sept. 24 – Doral Financial Corp. requested court approval of the bidding procedures and sale of 78 performing and non-performing mortgage loans and 38 real estate owned properties to buyer RNPM LLC for $4.7 million, according to a motion filed Sept. 24 with the Southern District of New York.

The motion also indicated a breakup fee in the amount of $150,000, which is equal to 3.2% of the purchase price, will be paid if the company sells any of the loans or real estate to another bidder.

"An auction and sale of the auction assets will determine the current value of the loans and REO [real estate owned] and liquidate these assets for the benefit of the debtor’s estate," the motion said. "The sale of these assets is in the best interest of the debtor’s estate and a valid exercise of the debtor’s business judgment."

The sale hearing is scheduled for Oct. 7.

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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