How is dvi liquidating trust
(the “Official Committee”) and defendants Michael A. In particular, Defendants deny they breached their alleged duties of care, loyalty, and good faith, fiduciary or otherwise; deny they violated any duties or laws; deny they were involved in, responsible for or knew about any alleged misuse of corporate resources, preferential transfers, wrongful and/or fraudulent transfers, round-tripping, double-pledging of collateral and/or pledging of in-eligible collateral; and deny they were involved in any improper or wrongful WCSR 3755995v1 -3- Case -cv-00955-GMS Document 115 Filed 10/17/2007 Page 4 of 12 scheme, transaction, or practice. The Parties agree to join any additional parties on or before November 19, 2007. This is the most cost effective way to conduct discovery in this matter. Buckley, the Trustee of the DVI Liquidating Trust (the “Liquidating Trustee”), as successor-in-interest to the claims of the Official Committee of Unsecured Creditors of DVI, Inc. Failing to supervise the management and operations of DVI -- including the failure to implement an internal system of independent checks and balances -- with the appropriate level of skill and care. The Alleged Defenses Defendants, former officers and directors of DVI, have denied all allegations set forth in Section 2A above and in Plaintiff’s Complaint. If necessary, the Parties will amend the pleadings on or before November 19, 2007. Joinder of Parties At this time, no other parties have been joined. 06-CV-1003, and two actions asserting claims against the Defendants and certain entities: WM High Yield Fund v. The Parties have conferred and desire to have discovery in this matter coordinated (to the extent possible) with discovery in the Pennsylvania Actions. # 3483) 1105 Market Street, 15th Floor Wilmington, DE 19801 (302) 504-7800 MONTGOMERY, MCCRACKEN, WALKER & RHOADS, LLP Richard L. Pledging the same collateral to two or more lenders to obtain otherwise unavailable advances from lines of credit; ? Discovery is already underway in the Pennsylvania Actions and has been consolidated pursuant to a Case Management Order (as revised, the “Case Management Order,” a copy of which is annexed hereto as Exhibit A). Pledging as collateral to lenders leases and loans that failed to meet the respective lender’s eligibility criteria, in order to obtain otherwise unavailable advances from lines of credit; ? 04-CV-1277, an action brought by one of DVI’s former lenders. # 4574) 3 Mill Road, Suite 306A Wilmington, DE 19806 (302) 655-9094 Thomas A. Philadelphia, PA 19103 Attorneys for Defendants Nathan Shapiro, William S. Mc Hugh DUANE MORRIS, LLP By:__/s/ Richard Riley_______________________ Richard W.
Defendants further deny they were involved in, responsible for or knew about any alleged misrepresentations and omissions of material facts or any alleged fraud perpetrated against DVI, DVIFS or DVIBC; and deny they received any improper benefits or engaged in any wrongful conduct of any kind. Identification of Issues The principal factual and legal issues genuinely in dispute are the following: (1) Whether any of – and if so, which of -- the Defendants engaged in improper transactions, made misrepresentations of material facts, and/or omitted to state material facts to DVI’s lenders, investors, buyers of securitized notes, and creditors, in order to hide DVI’s true financial condition and to induce DVI’s lenders, investors, buyers of securitized notes, and creditors to extend financing, cash investments and/or credit to DVI; (2) Whether any of – and if so, which of -- the Defendants breached their fiduciary duties to DVI; and (3) Whether, as alleged in the Complaint, any of – and if so, which of -- the Defendants’ grossly negligent, reckless and at times fraudulent actions, while DVI was insolvent or in the zone of insolvency, resulted in erroneous financial statements and the consequent incurrence of debt which was out of proportion to DVI’s ability to repay such debt, a loss of -4- WCSR 3755995v1 Case -cv-00955-GMS Document 115 Filed 10/17/2007 Page 5 of 12 over 0,000,000, and ultimately caused DVI to file for bankruptcy protection. Narrowing of Issues On or about March 28, 2007, the Court entered an order denying, in part, and granting, in part, the Defendants’ various motions to dismiss. WCSR 3755995v1 -5- Case -cv-00955-GMS Document 115 Filed 10/17/2007 Page 6 of 12 8. 06- CV-1003, the Liquidating Trustee’s claims against DVI’s former attorneys, Buckley v. To the extent that the Liquidating Trustee believes it needs additional discovery which cannot be WCSR 3755995v1 -6- Case -cv-00955-GMS Document 115 Filed 10/17/2007 Page 7 of 12 accomplished in the Pennsylvania Actions, the Liquidating Trustee will move the Court for leave, on notice to all Parties, thirty (30) days prior to the deadline for fact discovery in the Pennsylvania Actions.
Jurisdiction and Service This Court has jurisdiction over all Parties to this action. Transferring to various securitizations performing leases in exchange for delinquent leases without obtaining commensurate value; ?
Roberts, and Nathan Shapiro (the “Defendants”) (collectively with the Liquidating Trustee, “the Parties”) jointly submit this Joint Status Report: 1. WCSR 3755995v1 - 1- Case -cv-00955-GMS Document 115 Filed 10/17/2007 Page 2 of 12 Venue of this Action is proper in this district pursuant to 28 U. Repurchasing at par delinquent loans from securitizations into which they had been transferred without obtaining commensurate value; ?
The Complaint This action brings claims against a number of former officers and directors of DVI, Inc. (“DVIFS”) and DVI Business Credit Corporation (“DVIBC”) (collectively “DVI” or the “Debtors”) and emanates from the financial collapse of DVI.
WCSR 3755995v1 -7- Case -cv-00955-GMS Document 115 Filed 10/17/2007 Page 8 of 12 12.
Fay, Esquire Dilworth Paxson LLP 3200 Mellon Bank Center 1735 Market Street Philadelphia, PA 19103 Attorneys for Defendant Steven R.