Advanta Corp. (ADVNB, ADVNA) announced filing of a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Advanta has about $138 million of senior retail investment notes outstanding.
Advanta specified that it would not be able to meet all of its existing obligations over time, though it currently has close to $100 million in cash and equivalents on hand. The company said it is reviewing both existing and potential business opportunities in connection with the reorganization.
Advanta said its subsidiary Advanta Bank Corp., is not included in the Chapter 11 filing, but subsidiary's capital is, however, below regulatory capital requirements and over time may be turned over to an FDIC receivership.
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