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Last week, the Securities and Exchange Commission rejected the company's most recent quarterly report because an auditor had not signed the report. The rejection caused DVI's shares to plunge 27 percent.

In recent trading, DVI rebounded adding 70 cents, or more than 16 percent, to $5.

In recent trading, DVI rebounded adding 70 cents, or more than 16 percent, to $5.

DVI provides financing and leasing of health-care equipment. It also handles health-care receivables financing.

Pressure builds

Deloitte & Touche, which resigned in early June as DVI's auditor, wasn't satisfied with the accounting of a series of transactions dating from September 2001 to June 2002, according to a June 9 SEC filing.

Last week, DVI said it expects to appoint a replacement auditor as "promptly as reasonably practicable."

"While a very difficult situation for DVI, we continue to believe that the company possesses a solid core U.S. health-care equipment leasing business that is likely of interest to potential investors or buyers," said analyst Robert Napoli of U.S. Bancorp Piper Jaffray.

However, DVI's consideration of its options are exacerbated by several factors, Napoli said in a research note Monday.

These include, he said, the need to hire a new auditor and the fact it could be in default on some of its debt obligations due to the lack of audit review. DVI also faces liquidity issues focused primarily on $155 million of senior notes that matured in February, Napoli said.