DVI asks court to approve exit/DIP facility

By Jeff Pines

Washington, Nov. 1 - DVI Inc. asked the U.S. Bankruptcy Court for the District of Delaware Friday to approve its exit debtor-in-possession financing agreement through Goldman Sachs Credit Partners LP.

The lenders would be Goldman Sachs, Ableco Finance LLC and A3 Funding LP.

DVI is liquidating itself, but the liquidating trust will not be obligated under the facility.

The terms are similar to those of its existing credit agreement with nearly $134 million outstanding.

The medical equipment finance company said it needs approval in order to fund its liquidation plan, pay its administrative claims, allowed priority tax claims, and other priority claims.

The company's series A term loans and revolver loans carry a 9% interest rate; the series B, C and D have an 18% interest rate.

The unused commitment fee rate would be 50 basis points, and Goldman Sachs will get a $25,000 per month administrative fee.

A Nov. 17 hearing is scheduled.

DVI, of Jamison, Pa., filed for bankruptcy on Aug. 25, 2003. Its Chapter 11 case number is 03-12656.

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