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March 12, 2008 |
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R&G FINANCIAL: Says Dividend Payments Unlikely R&G Financial Corp. said that the payment of dividends and distribution of its outstanding preferred stock or its trust preferred securities is unlikely in the foreseeable future. As reported in the Troubled Company Reporter-Latin America on March 11, 2008, R&G Financial received regulatory permission to make dividend payments for March on its four outstanding series of preferred stock and distributions for March on its trust preferred securities issues. Business News Americas relates that the permission given to the company was conditional on the financial support provided by Director and former Chairman and Chief Executive Officer Victor Galan through his purchase of US$5.2 million of delinquent loans, which will assist in the funding of March dividend payments. "Based on these events, the company believes it is very uncertain that future dividends and distributions will be approved absent material improvements to the company's liquidity, capital and cash flows," R&G Financial said. Headquartered in San Juan, Puerto Rico, R&G Financial Corp. (PNK: RGFC.PK) -- http://www.rgonline.com/ -- is a financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage Corporation, Puerto Rico's second largest mortgage banker, R-G Investments Corporation, the company's Puerto Rico broker- dealer, and R-G Insurance Corporation, its Puerto Rico insurance agency. The company operates 37 bank branches in Puerto Rico, 36 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 44 mortgage offices in Puerto Rico, including 36 facilities located within R-G Premier Bank's banking branches. * * * As of September 2007, R&G Financial carried Fitch Ratings' CCC long-term issuer default rating. |
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