DVI, Jamison, Pa., filed for Chapter 11 bankruptcy protection in Wilmington, Del., listing $1.86 billion in assets and $1.61 billion in debt. In its petition, the company identified several factors, including accounting irregularities. Two subsidiaries, DVI Financial Services and DVI Business Credit, filed separate petitions for Chapter 11. Publicly traded DVI provides loans for medical equipment purchases and advances money to providers backed by accounts receivable. CEO Michael O'Hanlon resigned. The company hired AlixPartners, Southfield, Mich., to assist in its restructuring and named AlixPartners principal Mark Toney as its new CEO. Toney said DVI will try to obtain debtor-in-possession financing, and operations will continue as the company attempts to sell assets. He said initial discussions have occurred with potential buyers. DVI has $2.8 billion in managed assets. The company cited "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." -- by Mary Chris Jaklevic
Financing firm DVI files for bankruptcy
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