(Troubled Company Reporter - Feb. 14, 2011
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Advanta Corp. obtained an order from Bankruptcy Judge Kevin Carey confirming its Chapter 11 plan. The Plan was unanimously approved by seven of the 11 creditor classes. The official committee of unsecured creditors asked creditors to vote in favor of the plan. Under the plan, holders of $140.6 million in unsecured notes could be paid in full. General unsecured creditors, with as much as $180.6 million in claims, could recover up to 71.3%. The plan create six trusts that will liquidate and distribute to creditors and equity holders most of the Debtors' assets. A seventh trust will hold stock of Advanta, which will continue to own the stock of its Debtor-subsidiary, ASC, and a non-Debtor subsidiary, ABHC, along with some cash and a certain portion of Advanta's portfolio of business credit card receivables.
About Advanta Corp.
Advanta Corp. -- http://www.advanta.com/ -- issues business
purpose credit cards to small businesses and business
professionals in the United States. Advanta primarily funds and
operates its business credit card business through Advanta Bank
Corp., which offers a range of deposit products that are insured
by the Federal Deposit Insurance Corporation.
In June 2009, the FDIC placed significant restrictions on the
activities and operations of Advanta Bank, as the Bank's capital
ratios were below required regulatory levels.
On November 8, 2009, Advanta Corp. filed for Chapter 11 (Bankr. D.
Del. Case No. 09-13931). Attorneys at Weil, Gotshal & Manges LLP,
and Richards, Layton & Finger, P.A., serve as the Debtor's
bankruptcy counsel. Alvarez & Marsal is the financial advisor.
The Garden City Group, Inc., is the claims agent. The filing did
not include Advanta Bank. The petition said that Advanta Corp.'s
assets totaled $363,000,000 while debts totaled $331,000,000 as of
September 30, 2009.
Great story
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