DVI, Inc. Files for Reorganization; Appoints Mark Toney of AlixPartners As CEO.Business Editors/Health/Medical Writers JAMISON, Pa.--(BUSINESS WIRE)--Aug. 25, 2003 DVI (1) (Digital Video Interactive) An earlier compression technique that provided up to 72 minutes of full-screen video on a CD-ROM. Acquired by Intel in 1988 from RCA's Sarnoff Research labs, Princeton, NJ, DVI never caught on. , Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DVIX) today announced that it and two of its U.S. subsidiaries, DVI Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and DVI Business Credit, have filed voluntary petitions for relief under Chapter 11 of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Code in the United States Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware. DVI elected to file for reorganization as a result of significant financial difficulties stemming from an unsuccessful diversification strategy, unsuccessful integration of business units, decreased profitability, concerns regarding near-term liquidity requirements and the recent discovery of possible accounting irregularities. The Company also announced that a special committee of independent directors has been formed to investigate the possible accounting irregularities. DVI said that the objective of the Chapter 11 proceeding is to maximize recovery to creditors by facilitating an orderly sale of assets. The Company is currently in discussions with several parties regarding a potential sale. The Company has retained Latham & Watkins as legal counsel and has appointed AlixPartners as crisis managers. AlixPartners is an internationally recognized firm with expertise in crisis management and turning around troubled companies. In conjunction with the filing, Michael O'Hanlon, DVI's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. has resigned and Mark E. Toney, a principal at AlixPartners, was named CEO. "Our immediate goal is to stabilize the Company's financial situation and utilize the Chapter 11 process to enable us to operate the business as we work to sell the Company's assets," said Mark Toney. "We strongly believe that DVI's considerable asset portfolio will be attractive to the market, and we have already had initial discussions with a number of parties that have expressed interest in the Company." The Company said it is continuing to work toward obtaining Debtor-in-Possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. , as well as generate cash from within the Company in order to sustain operations while trying to sell its assets. The case numbers for the Company's filings in the U.S. Bankruptcy Court for the District of Delaware are: DVI, Inc. 03-12656 DVI Financial Services 03-12657 DVI Business Credit 03-12658 DVI is an independent specialty finance company for healthcare providers worldwide with $2.8 billion of managed assets. DVI extends loans and leases to finance the purchase of diagnostic imaging and other therapeutic medical equipment directly and through vendor programs throughout the world. DVI also offers lines of credit for working capital backed by healthcare receivables in the United States. Additional information is available at www.dvi-inc.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Any statements contained in this press release, which are not historical facts, are forward-looking statements. Such statements are based upon many important factors, which may be outside the DVI's control, causing actual results to differ materially from those suggested. Such factors include, but are not limited to, legislative and regulatory changes in general, including such changes affecting the healthcare industry, demand for DVI's services, market interest rates, pricing, market condition in the markets in which we operate, the effect of economic conditions, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , competition from institutions offering similar products and services, our access to funding on acceptable terms, the ability to complete financing transactions, and other risks identified in DVI's filings with the Securities and Exchange Commission. |
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