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8-K - FORM 8-K - ADVANTA CORP | c94519e8vk.htm |
Exhibit 99.1
Advanta Corp.s Board of Directors Authorizes
Liquidation of Assets with Goal of Maximizing
Recovery to Stakeholders
Liquidation of Assets with Goal of Maximizing
Recovery to Stakeholders
Spring
House, Pa., January 11, 2010 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 Companys 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.
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 Registrants 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 Registrants Bankruptcy Filing
on the Registrant and the interests of various creditors, equity holders and other constituents;
(4) the Bankruptcy Courts 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 Registrants 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 Registrants
liquidity or results of operations; (8) the increased legal costs related to the bankruptcy filing
and other litigation; (9) the Registrants 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 Registrants future
performance are detailed in the Registrants 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.
10/01
Media Contact:
Tom Becker
Sitrick And Company
212-573-6100 (Office)
646-335-5199 (Mobile)
Tom_Becker@sitrick.com
Tom Becker
Sitrick And Company
212-573-6100 (Office)
646-335-5199 (Mobile)
Tom_Becker@sitrick.com
Investor Contact:
Amy Holderer
Advanta Corp.
215-444-5335
aholderer@advanta.com
Amy Holderer
Advanta Corp.
215-444-5335
aholderer@advanta.com