"Reuters 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 capital. 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.
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.