Credit Card Defaults Push Advanta Corp. Into Ch. 11

Law360, New York (November 9, 2009, 7:03 PM EST) -- Struggling from debt from defaults in the small-business credit market, credit card issuer Advanta Corp. has filed for Chapter 11 bankruptcy protection and has said it may be forced to turn its banking unit over to federal regulators.

The Spring House, Penn.-based company filed the petition Sunday in the U.S. Bankruptcy Court for the District of Delaware, listing $363 million in assets and $331 million in debt. Its banking subsidiary, Advanta Bank Corp., is not included in the filing.

The company said it has about $100...
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