Advanta Corp.’s Board of Directors Authorizes Liquidation of Assets with Goal of Maximizing Recovery to Stakeholders
January 11 2010 - 1:18PM
Business Wire
Advanta Corp. (OTC: ADVBQ; ADVNQ) announced today that
consistent with the objectives of filing voluntary petitions for
relief under chapter 11 of the U.S. Bankruptcy Code on November 8,
2009, its Board of Directors has authorized the related
bankruptcy-filing debtor entities (the “Debtors”) to liquidate
their assets in order to maximize value for their stakeholders.
Advanta Bank Corp. and Advanta Bank were not included in the
bankruptcy filing and are therefore not Debtors.
The Debtors intend to prepare a chapter 11 plan that will
describe the liquidation of assets. As part of the plan to
liquidate, the Company expects to create a liquidating trust or
other entity or vehicle to hold certain assets that it may not be
feasible or desirable to liquidate either now or in the future. The
Company expects that there will be no distributions to the
Company’s preferred or common stockholders, nor continuing interest
in the Company (or liquidating trust) on the part of the preferred
or common stockholders, as a result of any plan that is approved by
the Bankruptcy Court.
About Advanta
Advanta Corp. has had a 59 year history of being a leading
innovator in the financial services industry and of providing great
value to its stakeholders, including its senior retail note holders
and shareholders, prior to the recent reversals. It has also been a
major civic and charitable force in the communities in which it is
based, particularly in the Greater Philadelphia area.
For more information about the bankruptcy proceedings, please
visit www.advantareorg.com.
This Press Release contains forward-looking statements that are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected. The most
significant among these risks and uncertainties are: (1) the
Registrant’s ability to obtain Bankruptcy Court approval with
respect to motions in the Debtors’ chapter 11 cases (the “Chapter
11 Cases”); (2) the ability of the Debtors to prosecute, develop
and consummate one or more chapter 11 plans with respect to the
Chapter 11 Cases; (3) the effects of the Registrant’s Bankruptcy
Filing on the Registrant and the interests of various creditors,
equity holders and other constituents; (4) the Bankruptcy Court’s
rulings in the Chapter 11 Cases and the outcome of the Chapter 11
Cases in general; (5) the length of time the Registrant will
operate under the Chapter 11 Cases; (6) the risks associated with
third party motions in the Chapter 11 Cases, which may interfere
with the Registrant’s ability to develop and consummate one or more
chapter 11 plans once such plans are developed; (7) the potential
adverse effects of the Chapter 11 Cases on the Registrant’s
liquidity or results of operations; (8) the increased legal costs
related to the bankruptcy filing and other litigation; (9) the
Registrant’s ability to maintain contracts with suppliers and
service providers and to retain key executives, managers and
employees; (10) the risk that Advanta Bank Corp. will not be able
to regain compliance with the capital levels and ratios required by
the Federal Deposit Insurance Corporation (the “FDIC”); and (11)
the risk that the FDIC will pursue further regulatory actions
against Advanta Bank Corp. and/or Advanta Bank, each a wholly-owned
direct or indirect subsidiary of the Registrant. The cautionary
statements provided above are being made pursuant to the provisions
of the Private Securities Litigation Reform Act of 1995 (the “Act”)
with the intention of obtaining the benefits of the “safe harbor”
provisions of the Act for any such forward-looking statements.
Additional risks that may affect the Registrant’s future
performance are detailed in the Registrant’s filings with the
Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and its Quarterly Reports on Form
10-Q.