Although an agreement between all creditors of DVI Inc. has been reached and the servicing transfer has been set for weeks, the proposal is currently being held up by bankruptcy court, sources said, which, for unknown reasons, refuses to hold further hearings until next month. Performance, meanwhile, continues to deteriorate, with total delinquencies nearing 40% in some transactions.
The proposal is the result of a meeting of various representatives of ABS holders, unsecured bond holders and debtor-in-possession providers at a New York location. Some even listening in from remote dial-in service for five hours last month, to hammer out their differences. For a reason unknown to most, the Bankruptcy Court is refusing to hold a hearing on the proposal until February.