UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): July 3, 2006
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R&G FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
PUERTO RICO
(State or other jurisdiction of incorporation)
001-31381 66-0532217
(Commission File Number) (I.R.S. Employer Identification No.)
280 JESUS T. PINERO AVE.
HATO REY, SAN JUAN, PUERTO RICO 00918
(Address of principal executive offices and zip code)
(787) 758-2424
(Registrant's telephone number, including area code)
NOT APPLICABLE.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS.
R&G Financial Corporation (the "Company") wishes to clarify and supplement
statements attributed to its Chairman and Chief Executive Officer, Victor J.
Galan, which appeared in an article in the June 15, 2006 issue of CARIBBEAN
BUSINESS. The article concerned the status of the restatement of the Company's
consolidated financial statements for the years ended December 31, 2002 through
2004, certain civil litigation involving the Company and positive results from
R-G Crown, the Company's Florida banking subsidiary. The article attributes
certain remarks to Mr. Galan regarding the status of the restatement process and
the Company's intentions with respect to the litigation.
The Company believes that it is unlikely that the restatement of its
consolidated financial statements for the years ended December 31, 2002 through
2004 will be completed by the end of this summer. The Audit Committee and the
Board of Directors are actively reviewing the restatement process and the
timetable for completing the restatement and filing of its consolidated
financial statements for the years ended December 31, 2002 through 2004 and for
filing its 2005 and 2006 public reports. The Company currently is undergoing a
replanning process with respect to the restatement and currently expects that
the restatement will be completed during the fourth quarter of 2006. The Company
expects to provide by the end of July additional information with respect to the
timing and status of the restatement and information with respect to the
Company's operational data through the second quarter of 2006.
With respect to the civil litigations that have been brought against the
Company, the Board of Directors has delegated the responsibility for overseeing
the litigations and determining the Company's strategy to a committee of the
Board. As a result of scheduling orders entered in those litigations, the
Company expects that plaintiffs in the actions will file amended complaints
after the issuance of the restatement. The committee overseeing the litigations
and the Company intend to defend vigorously against the actions that have been
brought, including possibly seeking a dismissal of the actions and exploring a
resolution through settlement on terms favorable to the Company.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
R&G FINANCIAL CORPORATION
Date: July 3, 2006
By: /s/ Vicente Gregorio
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Vicente Gregorio
Chief Financial Officer
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