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Article: Advanta Corp. files for Chapter 11 bankruptcy
- Article from:
- AP Online
- Article date:
- November 9, 2009
CopyrightCopyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. (Hide copyright information)
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Small business credit card lender Advanta Corp. has filed for Chapter 11 bankruptcy protection.
Its shares plunged more than 70 percent in midday trading Monday, dropping 25 cents to 8 cents. Earlier in the session, the stock hit an all-time low of 7.5 cents.
The filing late Sunday at U.S. Bankruptcy Court in Delaware comes five months after the company said it was shutting down its credit card lending business in a last-ditch effort to preserve cash as loan losses mounted.
The Spring House, Pa., company said it has nearly $100 million in cash on hand, but that would not be enough to meet its debt obligations over time. In its filing, the company listed total assets of ...