Amid a shroud of secrecy and following numerous delays, U.S. Bank N.A. has won the servicing rights for DVI Inc.'s deteriorating portfolio of medical equipment finance receivables. The announcement likely clears the way for the servicer event of default to be honored, making those who bought senior DVI paper at a discount the big winners in the saga.
"DVI FS and the trustee for the securitizations are negotiating a settlement agreement formally authorizing the transfer of servicing and amending certain provisions of the securitization documents," DVI reports in a filing with the Securities & Exchange Commission. "As soon as the settlement agreement is finalized, DVI FS will seek an expedited hearing in order to transfer servicing on a timely basis,"