The Supreme Court's decision favors Doral, expedites the mandate and remands the case to the Court of First Instance to be continued immediately.
"The Puerto Rico Supreme Court has recognized once again the important public interest and urgency of this case and has ordered the court to act diligently and immediately. Now the burden is on government to demonstrate the basis for its decision to arbitrarily nullify its longstanding tax agreement with Doral," said Doral's legal counsel Matthew D. McGill in a statement.
"While we are confident that our case will prevail in court, we hope that the government of Puerto Rico will take this opportunity to reconsider its ill-conceived decision to abandon its contractual obligation to Doral. And we continue to urge the government to negotiate a solution that is fair for all parties and that is in accordance with a series of tax agreements over the last eight years that have continually ratified the government's debt to Doral."
The stock was up 42.34% to $6.69 at 11:29 a.m. Nearly 5 million shares had changed hands, compared to the average volume of 1,355,980.
Separately, TheStreet Ratings team rates DORAL FINANCIAL CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate DORAL FINANCIAL CORP (DRL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."