Bankrupt medical equipment lessor DVI Inc. reported cash shortfalls in four of its nine outstanding securitization trusts and a slim surplus on an aggregate basis, according to records filed with the Securities and Exchange Commission. The shortfalls, experienced in the series 2000-1, 2000-2, 2002-2 and 2003-1 transactions, are relatively small, however, and are not seen as leading to a major principal loss for investors, sources said.

"The larger concern right now is the defaulted contracts within the trusts and whether the servicer will recoup cashflows that are greater than 180 days past due," one DVI ABS holder said.

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