DVI amended disclosure statement, reorganization plan leave estimated recoveries unchanged

By Jeff Pines

Washington, Oct. 12 - DVI Inc.'s amended disclosure statement and reorganization plan leave estimated recoveries for unsecured claims and noteholders unchanged.

The amended statement and plan were filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Noteholders are assumed to have rejected the plan and will not get to vote on it.

Holders of general unsecured claims of which DVI estimates there are $297.4 million will get an estimated 2.9% to 32.3% in distributions from a liquidating trust.

Holders of subordinated unsecured claims, of which there are an estimated $32.9 million, may get an estimated 2.9% to 32.3% from a trust if there is any money left over after paying off all administrative claims, professional claims and allowed priority tax claims.

A Nov. 17 confirmation hearing is scheduled.

In a separate matter, DVI obtained final approval of the third amendment to its debtor-in-possession financing, according to a Friday filing. The amendment will provide DVI with another $1.5 million of series D term loans to fund the company's liquidation.

The second amendment to the DIP was approved last month. It provided $5 million in series D term loans at 18%.

The administrative agent fee is $25,000 per month.

DVI, a medical equipment finance company based in Jamison, Pa., filed for bankruptcy on Aug. 25, 2003. Its Chapter 11 case number is 03-12656.

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