Posted on Mon, Nov. 9, 2009
Advanta Corp., a Spring House, Montgomery County, credit card lender that froze customer accounts last spring, filed for bankruptcy protection late Sunday because it does not have enough money to meet all its obligations, including those to holders of its retail investment notes.
The company said in a news release that it has $100 million in cash and owed retail holders of its notes $138 million. Advanta said it expected the Chapter 11 reorganization filing to maximize recoveries to its retail note holders.
The bankruptcy filing does not include Advanta Bank Corp., a Utah-based subsidiary of Advanta that had been one of the largest issuers of credit cards to small businesses.
That business is trying to collect $2.7 billion in credit card charges from 360,000 customers.
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