(November 13, 2009, Weil Gotshal News)
On November 8, 2009, Weil Gotshal filed a chapter 11 petition in the U.S. Bankruptcy Court in Delaware on behalf of small business credit card lender Advanta. The company’s difficulties stem from the onset of the credit crisis and resulting recession, as its small business customers struggle to pay off their debts. As of the date of the filing, the company estimated that it had close to $100 million in cash on hand and listed total assets of $363 million and total debt of $331 million.
Advanta is the holding company of Advanta Bank Corp., one of the nation's largest issuers of credit cards to small businesses, which is not included in the bankruptcy filing. However, the Bank's credit card accounts are closed for future use and its capital levels are below regulatory requirements, which could lead to the Bank being turned over to an FDIC receivership.
The Weil Gotshal team representing Advanta is led by bankruptcy partners Marcia Goldstein and Robert Lemons and associates Robert Jordan, David Griffiths, Jose Raul Alcantar and Jennifer Ganesh.