Doral Financial Corp. filed for chapter 11 protection yesterday, saying that it intends to wind down its businesses, liquidate its assets, and seek approval for a liquidation plan, Reuters reported yesterday. DFC, which has retail banking operations in Puerto Rico and the U.S., listed assets of $50 million to $100 million and liabilities of $100 million to $500 million. DFC said that its subsidiaries - Doral Insurance Agency LLC, Doral Recovery Inc. and Doral Properties Inc., have not filed for bankruptcy protection. Doral was put under operating restrictions last month after being told by the U.S. Federal Deposit Insurance Corp. (FDIC) in January that a plan it submitted to restore its capital was not acceptable. Doral has also been under pressure in a lengthy fight with Puerto Rico about a $229 million tax refund. It lost an appeals court ruling to grant the lender the refund.
