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."

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