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DVI, Inc. (DVI) Message Board

  • sister_santiago sister_santiago Jan 29, 2004 4:36 PM Flag

    Last nail in DVI coffin


    Asset-backeds-Saxon, C-BASS price; DVI defaults up
    Thursday January 29, 4:15 pm ET

    NEW YORK, Jan 29 (Reuters) - ... DVI DEFAULTS RISE
    Default rates on two-thirds of the outstanding series of
    ABS notes issued by bankrupt medical finance company DVI Inc.
    (Other OTC:DVIXQ.PK - News) rose sharply in January, John McElravey, analyst at
    Banc One Capital Markets, said in a report on Thursday.
    Based on January data from DVI's servicing unit, the
    cumulative default rate on the 2003 series of ABS soared to
    51.9 percent from December's 3 percent, McElravey said.
    January's cumulative recoveries of money from medical
    leases that back these notes was zero, he said.
    "The absence of recoveries underscores the disarray in the
    servicing platform," McElravey said in the report.
    The Jamison, Pennsylvania-based company filed for
    bankruptcy last August after discovering improprieties in its
    financial dealings, which prevented it from obtaining new
    DVI has nine series of ABS outstanding, worth approximately
    $1.7 billion to $1.9 billion.
    The company has said it plans to liquidate assets in
    bankruptcy to pay back creditors.

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    • Actually, the problems with DVI's Asset Backed Securities have very little to do with DVI Inc.

      DVI has successfully negotiated with USBPS to transfer of the servicing rights for the Asset Backed Securities at a very nice profit. By my calculation, DVI will receive $80m+++. Add to that the $133m DVI is getting for the sale of their UK and European operations and this company will be swiming in cash.

      If they can get out of their $155m of corporate bonds at just pennies on the dollar, that leaves even more $$$ for shareholders.

      In the end, shareholders could easily get $1-$2 per share after total liquidation.