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In a press release Wednesday, DVI said U.S. Bank National Association claims the company is in default for failing to file a third-quarter financial report with the Securities and Exchange Commission (News - Websites).

Last month, an SEC staff informed DVI that its third-quarter financial report was deficient because the statements weren't reviewed by an independent auditor.

DVI, on Wednesday, advised the trustee for the notes, which are due in 2004, that it doesn't believe a default exists under the notes' indenture.

DVI said it may challenge the validity of the default notice if U.S. Bank National Association doesn't rescind it promptly.

DVI could also seek a waiver or modification from other noteholders and said it may pursue both options. The company has 60 days from the date of the notice to resolve the alleged noncompliance.

In early June, Deloitte & Touche LLP resigned as DVI's auditor. DVI reported in an 8-K filing that it disagreed with the accounting firm's position that a review of the accounting treatment for a series of deals between September 2001 and June 2002 wasn't complete.