DVI to File Bankruptcy?---Up-date
The rumors about Netbank or Republic Leasing of South Carolina
considering the portfolio's are not true. Republic does not buy
portfolios. They only purchase individual leases from approved brokers
and lessors. They usually are on a one-to-one basis or a program basis
with their established lessors.
According to highly reliable sources, Republic, who is interested in
all "good business from good sources," may consider funding some of
DVI's (or any other qualified source) leases that meet Republic's normal
criteria, if counsel agrees that their normal broker/lessor funding
procedures will protect them under the existing circumstances. In other
words, just business as usual.
By the press releases of DVI, management appears "desperate" for an
angel to come in to stave off their inability to acquire funds to meet
cash flow. There are a lot of unhappy vendors, staff, and sales
people, too, plus many jobs are at stake. A failure of this magnitude
is not what the leasing industry needs today.
A very reliable inside source tells Leasing News that DVI has "... not
funded any deals in close to three weeks....they had been conducting business (i.e. approving deals) up until last Friday. They have not issued any approvals since Friday. Looks like the wheels have ground to a halt. Unlikely they will restart anytime soon if ever.
"The million dollar question is!!! will Strategic Partners (i.e. small
ticket division in Chicago) simply emerge as a "new entity" and start conducting business as usual. The problem child has been big brother in Pennsylvania."