EX-99.1 2 mm07-2810_8kex991.htm JUNE 2010 MONTHLY OPERATING REPORT mm07-2810_8kex991.htm
 
EXHIBIT 99.1

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
 
Chapter 11
In Re: Advanta Corp., et al.
Case No. 09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

MONTHLY OPERATING REPORT

Required Documents
Form No.
Document
Attached
Explanation
Attached
Affidavit/Supp.
Attached
Schedule of Cash Receipts and Disbursements
MOR-1
X
    
Bank Reconciliation (or copies of debtors bank reconciliations)
MOR-1a
    
X
Schedule of Professional Fees Paid
MOR-1b
X
    
Copies of bank statements
        
Cash disbursements journals 
  
X
    
Statements of Operations
        
For the Reporting Period 
MOR-2a
X
    
For the Period from Petition Date through End of Reporting Period
MOR-2b
X
    
Balance Sheets
        
As of End of Current Reporting Period
MOR-3a
X
    
As of Petition Date
MOR-3b
X
    
Status of Postpetition Taxes
MOR-4
X
  
X
Copies of IRS Form 6123 or payment receipt
        
Copies of tax returns filed during reporting period
        
Summary of Unpaid Postpetition Debts
MOR-4
X
    
Listing of aged accounts payable 
MOR-4
X
    
Accounts Receivable Reconciliation and Aging 
MOR-5
X
    
Debtor Questionnaire 
MOR-5
X
    

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.


/s/ Philip M. Browne
  
07/28/10
Signature of Authorized Individual*
  
Date
     
     
     
Philip M. Browne
  
Chief Financial Officer
Printed Name of the Authorized Individual
  
Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.


 
 
 


UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In Re:
  
Chapter 11
Advanta Corp., et al.
  
Case No. 09-13931 (KJC)
Debtors
  
Reporting Period: June 1, 2010 to June 30, 2010


Disclaimer

Advanta Corp. and certain of its subsidiaries (collectively, the “Debtors”) caution investors and potential investors not to place undue reliance upon the information contained in this Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of Advanta Corp. or any of its subsidiaries or affiliates. The Monthly Operating Report has been prepared solely for the purpose of complying with the operating guidelines as described in the Chapter 11 Trustee Handbook, United States Department of Justice, May 2004 in accordance with 28 U.S.C. § 586(a)(3). The Monthly Operating Report is limited in scope and only covers a limited time period.

The financial statements in the Monthly Operating Report were not audited or reviewed by independent accountants and were not prepared in accordance with accounting principles generally accepted in the United States of America. The Monthly Operating Report presents condensed financial information of the Debtors.

There can be no assurance that, from the perspective of an investor or a potential investor in the securities of Advanta Corp. or any of its subsidiaries or affiliates, the Monthly Operating Report is complete. The Monthly Operating Report may be subject to future adjustment and reconciliation. The Monthly Operating Report also contains information for periods which are shorter or otherwise different from those required in periodic reports pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and such information might not be indicative of the Debtors’ financial condition or operating results for the period that would be reflected in the Debtors’ financial statements or in reports pursuant to the Exchange Act. The information set forth in the Monthly Operating Report should not be viewed as indicative of future results. This disclaimer applies to all information contained herein. The Debtors reserve all rights to amend the results presented in this Monthly Operating Report.


 
 
 


United States Bankruptcy Court
District of Delaware
 
Chapter 11
In Re: Advanta Corp., et al.
Case No.09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENT

Debtor
  
Advanta Corp.
  
Advanta Business Services Holding Corp.
  
Advanta Service Corp.
  
Advanta Business Services Corp.
  
Advanta Shared Services Corp.
  
Advanta Finance Corp.
  
Advanta Mortgage Holding Co.
    
Advanta Mortgage Corp. USA
    
Advanta Investment Corp.
  
   
09-13931 (KJC)
  
09-13935 (KJC)
  
09-13932 (KJC)
  
09-13933 (KJC)
  
09-13934 (KJC)
  
09-13944 (KJC)
  
09-13938 (KJC)
    
09-13937 (KJC)
    
09-13942 (KJC)
  
Cash - Beginning of Reporting Period
   $ 106,689,431   $ 1,118,286   $ 1,644   $ 844,027   $ 105,028   $ 4,990   $ 90     $ 49,990     $ 4,990  
Receipts
                                                            
 Receivable Receipts
     1,729,558                                                      
 Investment Income
     -     203,934                                                
 C/O Sale Portfolio Recoveries
     146,664                                                      
 Interco Shared Services Receipts
     55,086                                                      
 Other Receipts
     55,962                 264     38,236                              
 Total Receipts
     1,987,270     203,934     -     264     38,236     -     -       -       -  
                                                             
Unrealized gain / (loss) on investment
     399                                                      
                                                             
Intercompany Transfers In / (Out)
     -     -     -     -     -     -     -       -       -  
                                                             
Disbursements
                                                            
 Personnel Costs
     561,855                                                      
 Advertising Costs
     -                                                      
 Equipment Costs
     32,807                                                      
 Net Occupancy Costs
     66,997                                                      
 Other Costs
     569,546     10                 5,143                              
 Business Taxes / Licenses
     -                                                      
 Interco Shared Services Payments
     4,591                                                      
 Restructure Fees
     1,731,295                                                      
 Total Disbursements
     2,967,091     10     -     -     5,143     -     -       -       -  
                                                             
Net Cash Flow
     (979,821 )   203,924     -     264     33,093     -     -       -       -  
                                                             
Cash - End of Reporting Period
   $ 105,710,009   $ 1,322,209   $ 1,644   $ 844,291   $ 138,121   $ 4,990   $ 90     $ 49,990     $ 4,990  

 

MOR-1
 
 


United States Bankruptcy Court
District of Delaware
 
Chapter 11
In Re: Advanta Corp., et al.
Case No.09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENT

Debtor
  
Advanta Auto Finance Corp.
    
Advanta Advertising Inc.
    
Advanta Credit Card Rec. Corp.
    
Advanta Ventures Inc.
    
Advantennis Corp.
    
ideablob Corp.
    
BE Corp.
    
Total
  
   
09-13939 (KJC)
    
09-13943 (KJC)
    
09-14127 (KJC)
    
09-14125 (KJC)
    
09-13941 (KJC)
    
09-14129 (KJC)
    
09-14130 (KJC)
        
Cash - Beginning of Reporting Period
   $ 84,047     $ 990     $ 17,357     $ 90     $ 61,447     $ 65,585     $ 100     $ 109,048,090  
Receipts
                                                                
 Receivable Receipts
                                                             1,729,558  
 Investment Income
                                                             203,934  
 C/O Sale Portfolio Recoveries
                                                             146,664  
 Interco Shared Services Receipts
                                                             55,086  
 Other Receipts
     229                                               106,000       200,691  
 Total Receipts
     229       -       -       -       -       -       106,000       2,335,932  
                                                                 
Unrealized gain / (loss) on investment
                                                             399  
                                                                 
Intercompany Transfers In / (Out)
     -       -       -       -       -       -       -       -  
                                                                 
Disbursements
                                                                
 Personnel Costs
                                                             561,855  
 Advertising Costs
                                                             -  
 Equipment Costs
                                                             32,807  
 Net Occupancy Costs
                                                             66,997  
 Other Costs
                     10                               10       574,720  
 Business Taxes / Licenses
                                                             -  
 Interco Shared Services Payments
                                                             4,591  
 Restructure Fees
                                                             1,731,295  
 Total Disbursements
     -       -       10       -       -       -       10       2,972,264  
                                                                 
Net Cash Flow
     229       -       (10 )     -       -       -       105,990       (636,332 ) 
                                                                 
Cash - End of Reporting Period
   $ 84,275     $ 990     $ 17,347     $ 90     $ 61,447     $ 65,585     $ 106,090     $ 108,412,157  


MOR-1
 
 


United States Bankruptcy Court
District of Delaware
 
 
Chapter 11
In Re: Advanta Corp., et al.
Case No.09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

CASH DISBURSEMENTS JOURNALS

Debtor
Case No.
  
Apr
    
May
    
Jun
    
Quarterly Disb.
    
Fees
  
Advanta Corp.
09-13931 (KJC)
     2,121,975       2,504,188       2,467,488       7,093,652        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 2,121,975     $ 2,504,188     $ 2,467,488     $ 7,093,652     $ 13,000  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Service Corp.
09-13932 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Business Services Corp.
09-13933 (KJC)
     2,505       249       207       2,961        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 2,505     $ 249     $ 207     $ 2,961     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Shared Services Corp.
09-13934 (KJC)
     718,598       929,578       503,180       2,151,356        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 718,598     $ 929,578     $ 503,180     $ 2,151,356     $ 9,750  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Business Serv. Holding Corp.
09-13935 (KJC)
     335       10       10       355        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 335     $ 10     $ 10     $ 355     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Great Expectations Franchise Corp.
09-13936 (KJC)
     585       238       -       823        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 585     $ 238     $ -     $ 823     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Mortgage Corp. USA 
09-13937 (KJC)
     549       -       3       552        
Total Disbursements 
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 549     $ -     $ 3     $ 552     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Mortgage Holding Company
09-13938 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Auto Finance Corporation
09-13939 (KJC)
     325       1,316       -       1,641        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ 1,316     $ -     $ 1,641     $ 325  


MOR-1
 
 


United States Bankruptcy Court
District of Delaware
 
 
Chapter 11
In Re: Advanta Corp., et al.
Case No.09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

CASH DISBURSEMENTS JOURNALS

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Great Expectations Management Corp.
09-13940 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advantennis Corp.
09-13941 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Investment Corp.
09-13942 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Advertising Inc.
09-13943 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Finance Corp.
09-13944 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Great Expectations International Inc.
09-13945 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Ventures Inc.
09-14125 (KJC)
     325       -       -       325        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ -     $ -     $ 325     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Advanta Credit Card Rec. Corp.
09-14127 (KJC)
     1,913       -       10       1,923        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 1,913     $ -     $ 10     $ 1,923     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
ideablob Corp.
09-14129 (KJC)
     325       705       393       1,423        
Total Disbursements
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 325     $ 705     $ 393     $ 1,423     $ 325  


MOR-1
 
 


United States Bankruptcy Court
District of Delaware
 
 
Chapter 11
In Re: Advanta Corp., et al.
Case No.09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

CASH DISBURSEMENTS JOURNALS

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
BE Corp.
09-14130 (KJC)
     2,327       1,400       973       4,700        
Total Disbursements 
                                      
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 2,327     $ 1,400     $ 973     $ 4,700     $ 325  

Debtor
Case No.
  
Apr
    
May
    
June
    
Quarterly Disb.
    
Fees
  
Total 
                                
Total Disbursements 
     2,852,362       3,437,685       2,972,264       9,262,311       -  
Less: Transfers to Debtor in Possession Accounts
     -       -       -       -       -  
Plus: Estate Disbursements Made by Outside Sources
     -       -       -       -       -  
Total Disbursements For Calculating U.S. Trustee Quarterly Fees
   $ 2,852,362     $ 3,437,685     $ 2,972,264     $ 9,262,311     $ 28,275  
                                           
                                           
                             
TOTAL FEES
     $ 28,275  

 
 
 
 
 
 
 

MOR-1
 
 




UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In Re:
  
Chapter 11
Advanta Corp., et al.
  
Case No. 09-13931 (KJC)
Debtors
  
Reporting Period: June 1, 2010 to June 30, 2010


Statement with Respect to Bank Account Reconciliations, Bank Statements and Bank Accounts
For the Period From June 1, 2010 to June 30, 2010



Bank Account Reconciliations
The Debtors affirm that bank reconciliations were prepared for all open and active Debtor bank accounts as of June 30, 2010.

Bank Statements and Bank Accounts
The Debtors affirm that bank statements for all open and active bank accounts are retained by the Debtors. There were no bank accounts opened by the Debtors during the current reporting period. Attached is a list of Debtors’ bank accounts and balances as of June 30, 2010.
 
 
 
 
 
 
 

MOR-1a
 
 


United States Bankruptcy Court
District of Delaware
 
In Re: Advanta Corp., et al.
 Chapter 11
Debtors
 Case No. 09-13931 (KJC)
 
 Reporting Period: June 1, 2010 to June 30, 2010

List of Bank Accounts for Debtor Entities
          
       
June 30, 2010
  
 
Debtor Case No.
Bank
  
Bank Balance
  
Advanta Corp. Cash Accounts
          
Master Concentration (#XXX2271)
09-13931 (KJC)
Republic First Bank
   $ 27,853,351.31  
Accounts Payable (#XXX2328)
09-13931 (KJC)
Republic First Bank
     242,995.55  
Care Assistance (#XXX2336)
09-13931 (KJC)
Republic First Bank
     121,582.73  
ACH Taxes (#XXX2344)
09-13931 (KJC)
Republic First Bank
     0.01  
Utilities Escrow Account (#XXX5890)
09-13931 (KJC)
Republic First Bank
     29,000.00  
Wachovia Payroll Account (#XXXXXXXXX7257)
09-13931 (KJC)
Wachovia
     9,091.71  
             
Total Advanta Corp.
         28,256,021.31  
             
Entity Level Cash Accounts
            
Advanta Shared Services Corp. (#XXX3235)
09-13934 (KJC)
Republic First Bank
     138,120.76  
Advanta Credit Card Receivables Corp. (#XXX3332)
09-14127 (KJC)
Republic First Bank
     17,346.74  
Advanta Advertising (#XXX3006)
09-13943 (KJC)
Republic First Bank
     990.00  
Advanta Auto Finance (#XXX3014)
09-13939 (KJC)
Republic First Bank
     84,275.38  
Advanta Business Services Corp. (#XXX3030)
09-13933 (KJC)
Republic First Bank
     844,290.74  
Advanta Business Services Holding Corp. (#XXX3049)
09-13935 (KJC)
Republic First Bank
     1,322,209.48  
Advanta Finance Corp. (#XXX3065)
09-13944 (KJC)
Republic First Bank
     4,990.00  
Advanta Investment Corp. (#XXX3189)
09-13942 (KJC)
Republic First Bank
     4,990.00  
Advanta Mortgage Corp. USA (#XXX3200)
09-13937 (KJC)
Republic First Bank
     49,990.00  
Advanta Mortgage Holding Corp. (#XXX3219)
09-13938 (KJC)
Republic First Bank
     90.00  
Advanta Service Corp. (#XXX3227)
09-13932 (KJC)
Republic First Bank
     1,643.73  
Advanta Ventures Inc. (#XXX3391)
09-14125 (KJC)
Republic First Bank
     90.00  
Advantennis Corp. (#XXX3243)
09-13941 (KJC)
Republic First Bank
     61,446.51  
BE Corp. (#XXX3286)
09-14130 (KJC)
Republic First Bank
     106,090.00  
ideablob Corp. (#XXX3251)
09-14129 (KJC)
Republic First Bank
     65,584.98  
             
Total Entity Level
         2,702,148.32  
             
Total Cash Accounts
         30,958,169.63  
             
Advanta Corp. Investment Account
            
Dreyfus Treasury Prime Cash Management Fund (#XXXXX4719)
09-13931 (KJC)
       77,453,987.54  
             
             
Total Cash & Investments
       $ 108,412,157.17  

 

MOR-1a
 
 


United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010

Schedule of Retained Professionals Fees and Expenses Paid

           
Petition Date to
  
       
Check
Amount Paid (A)
End of Reporting Period
  
Payee
Period Covered
Total Amount Sought
Payor
Number
Date
Fees
Expenses
Fees
    
Expenses
  
Garden City Group
4/1/10 - 4/30/10
 $ 5,646.36
Advanta Corp.
  1883
6/11/2010
 $ 5,675.46 $ 9.36
(B)
    
(B)
  
Garden City Group
5/1/10 - 5/31/10
 $ 89,456.14
Advanta Corp.
  1902
6/18/2010
 $ 81,509.79 $ 7,946.35
(B)
    
(B)
  
Alvarez & Marsal
3/1/10 - 3/31/10
 $ 280,920.21
Advanta Corp.
Wire
6/17/2010
 $ 222,476.40 $ 2,824.71 $ 944,920.80     $ 25,019.79  
FTI Consulting
      
Advanta Corp.
             $ 542,190.00     $ 4,926.87  
KPMG
4/1/10 - 4/30/10
 $ 141,025.42
Advanta Corp.
  1903
6/18/2010
 $ 66,724.38 $ 57,619.94 $ 664,151.08     $ 65,251.59  
Weil, Gotshal & Manges
2/1/10 - 2/28/10
 $ 536,315.71
Advanta Corp.
Wire
6/17/2010
 $ 423,306.80 $ 7,182.21
(C)
    
(C)
  
Weil, Gotshal & Manges
3/1/10 - 3/31/10
 $ 678,490.51
Advanta Corp.
Wire
6/17/2010
 $ 525,330.40 $ 21,827.51
(C)
    
(C)
  
Warren H. Smith & Assoc
      
Advanta Corp.
             $ 260.00     $ -  
Latham & Watkins
      
Advanta Corp.
             $ 723,806.00     $ 7,346.43  
Richards, Layton & Finger
4/1/10 - 4/30/10
 $ 44,192.40
Advanta Corp.
Wire
6/23/2010
 $ 34,660.40 $ 866.90 $ 190,178.00     $ 16,377.25  

(A) "Amounts Paid" reflect 20% of fees heldback from certain professionals, as required by orders of the Court.

(B) The cumulative fees and expenses paid to Garden City Group for the period from petition date to end of reporting period, including both payments listed above, are $344,256.18 for fees and $47,519.62 for expenses. The amount of fees paid is $38.46 greater than amount sought, due to duplicate application of a payment credit in May.

(C) The cumulative fees and expenses paid to Weil, Gotshal & Manges for the period from petition date to end of reporting period, including both of the payments listed above, are $1,594,309.00 for fees and $43,962.14 for expenses.

 

MOR-1b
 
 

UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In Re:
  
Chapter 11
Advanta Corp., et al.
  
Case No. 09-13931 (KJC)
Debtors
  
Reporting Period: June 1, 2010 to June 30, 2010

Note Regarding Bank Subsidiaries


The Utah Division of Financial Institutions closed Advanta Bank Corp. (“ABC”), a wholly-owned subsidiary of Advanta Corp., and the Federal Deposit Insurance Corporation (the “FDIC”) was appointed the receiver of ABC effective March 19, 2010. As a result, the FDIC assumed all of ABC’s deposits and controls all of ABC’s assets. Advanta Corp. expects no recovery from the FDIC for Advanta Corp.’s ownership interest in ABC. The book value of Advanta Corp.’s investment in the stock of Advanta Bank Corp. was reduced to zero as of March 19, 2010. As a result, Advanta Corp.’s income statement for the period from petition date to June 30, 2010 includes a $63 million loss that is classified as equity in earnings (loss) of subsidiaries. As previously disclosed, Advanta Corp. does not expect that any of the proceeds associated with the liquidation of the assets of ABC will be distributed to Advanta Corp. or its stakeholders, including stockholders and creditors, on account of Advanta Corp.’s equity interest in ABC. The balance sheets of the Debtors as of June 30, 2010 included approximately $18 million of net assets related to ABC, which include claims against ABC for deposits and various types of intercompany receivables. The Debtors may have additional claims related to ABC in addition to these amounts.

Advanta Bank was a Delaware state bank that was an indirect subsidiary of Advanta Corp. until it dissolved effective June 30, 2010. On March 26, 2010, prior to its dissolution, Advanta Bank entered into a settlement agreement with the FDIC. As previously disclosed, the FDIC assessed cross-guarantee liability against Advanta Bank in relation to deposit liabilities of ABC, based on the common ownership of the two banks. Advanta Bank was also, as previously disclosed, involved in regulatory, administrative and judicial proceedings with the FDIC. The settlement agreement between Advanta Bank and the FDIC settled the cross-guarantee liability and Advanta Bank’s regulatory, administrative and judicial proceedings with the FDIC. As part of the settlement agreement, Advanta Bank agreed to transfer to the FDIC all of the cash, loans, securities, accounts receivable and other assets of Advanta Bank with the parties agreeing that this transfer would fully satisfy the cross-guarantee liability that was asserted by the FDIC. The settlement agreement also contains mutual releases from each of the parties against the other. Advanta Bank recognized a charge of $4.5 million associated with the settlement agreement, which is reflected in Advanta Corp.’s income statement for the period from petition date to June 30, 2010 as part of equity in earnings (loss) of subsidiaries. The balance sheets of the Debtors as of June 30, 2010 have no amounts related to Advanta Bank.


 
 
 

United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010
INCOME STATEMENTS
FOR THE MONTH ENDED JUNE 30, 2010
(Unaudited)
   
Advanta Corp.
    
Advanta Business
Services
Holding Corp.
    
Advanta
Business
Services Corp.
    
Advanta
Shared
Services Corp.
    
Advanta
Service Corp.
    
Advanta
Advertising Inc.
    
Advantennis
Corp.
    
Advanta
Investment Corp.
    
Advanta Mortgage
Holding Co.
  
(In thousands)
  
09-13931 (KJC)
    
09-13935 (KJC)
    
09-13933 (KJC)
    
09-13934 (KJC)
    
09-13932 (KJC)
    
09-13943 (KJC)
    
09-13941 (KJC)
    
09-13942 (KJC)
    
09-13938 (KJC)
  
                                                       
Net interest income
   $ 4     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
                                                                         
Provision for credit losses
     0       0       0       0       0       0       0       0       0  
                                                                         
Net interest income after provision for credit losses
     4       0       0       0       0       0       0       0       0  
                                                                         
Noninterest revenues (losses):
                                                                        
Insurance revenues, net
     0       0       0       0       0       0       0       0       0  
Equity in earnings of subs
     (1,920 )     (2 )     0       0       0       (0 )     0       0       (0 )
Intercompany management fees
     10       0       0       0       0       0       0       0       0  
Other noninterest revenue
     37       0       0       0       0       0       0       0       0  
Total noninterest revenues (losses)
     (1,872 )     (2 )     0       0       0       (0 )     0       0       (0 )
                                                                         
Operating expenses:
                                                                        
Personnel expense
     675       0       0       293       0       0       0       0       0  
External processing
     0       0       0       8       0       0       0       0       0  
Advertising expense
     0       0       0       (7 )     0       0       0       0       0  
Postage expense
     1       0       0       0       0       0       0       0       0  
Professional fees
     0       0       0       2       0       0       0       0       0  
Consultant fees
     50       0       0       29       0       0       0       0       0  
Fraud losses
     0       0       0       0       0       0       0       0       0  
Equipment expense
     17       0       0       50       0       0       0       0       0  
Telephone expense
     (1 )     0       0       15       0       0       0       0       0  
Occupancy expense
     27       0       0       202       0       0       0       0       0  
Intercompany servicing fees
     37       0       0       0       0       0       0       0       0  
Other expenses
     77       0       2       63       0       0       0       0       0  
Total operating expenses
     885       0       2       655       0       0       0       0       0  
                                                                         
Reorg. exp. - Professional fees
     1,457       0       0       0       0       0       0       0       0  
Reorg. exp. - Severance
     109       0       0       316       0       0       0       0       0  
Reorg. exp. - Trustee quarterly fees
     3       0       0       3       0       0       0       0       0  
(Gain) loss on asset sales
     409       0       0       1,356       11       0       0       0       0  
Reorganization items
     1,978       0       0       1,675       11       0       0       0       0  
                                                                         
Pretax income (loss)
     (4,731 )     (3 )     (2 )     (2,329 )     (11 )     (0 )     (0 )     (0 )     (0 )
                                                                         
Income tax expense (benefit)
     0       0       0       0       0       0       0       0       0  
                                                                         
Net income (loss)
   $ (4,731 )   $ (3 )   $ (2 )   $ (2,329 )   $ (11 )   $ (0 )   $ (0 )   $ (0 )   $ (0 )

Note: The Income Statements were prepared on an accrual basis and include the financial results for the Debtor entities. The statements do not eliminate intercompany revenues,
costs or management fees. These Income Statements do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent
the consolidated financial results of Advanta Corp.
 
 
 

MOR-2a
 
 
 
 
 
United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010
INCOME STATEMENTS
FOR THE MONTH ENDED JUNE 30, 2010
(Unaudited)
   
Advanta Auto
Finance Corp.
    
Advanta Mortgage
Corp. USA
    
Advanta
Finance
Corp.
    
Advanta
Credit Card
Rec. Corp.
    
Advanta
Ventures Inc.
    
BE Corp.
    
ideablob
Corp.
    
Great
Expectations
Int'l Inc.
    
Great
Expectations
Franchise Corp.
    
Great
Expectations
Mgmt. Corp.
  
(In thousands)
  
09-13939 (KJC)
    
09-13937 (KJC)
    
09-13944 (KJC)
    
09-14127 (KJC)
    
09-14125 (KJC)
    
09-14130 (KJC)
    
09-14129 (KJC)
    
09-13945 (KJC)
    
09-13936 (KJC)
    
09-13940 (KJC)
  
                                                             
Net interest income
   $ 0     $ 0     $ 0     $ 461     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
                                                                                 
Provision for credit losses
     0       0       0       0       0       0       0       0       0       0  
                                                                                 
Net interest income after provision for credit losses
     0       0       0       461       0       0       0       0       0       0  
Noninterest revenues (losses):
                                                                                
Insurance revenues, net
     0       0       0       1       0       0       0       0       0       0  
Equity in earnings of subs
     0       (0 )     0       0       104       0       0       0       0       0  
Intercompany management fees
     0       0       0       0       0       0       0       0       0       0  
Other noninterest revenue
     0       0       0       5       0       0       0       0       0       0  
Total noninterest revenues (losses)
     0       (0 )     0       7       104       0       0       0       0       0  
                                                                                 
Operating expenses:
                                                                                
Personnel expense
     0       0       0       0       0       0       0       0       0       0  
External processing
     0       0       0       0       0       0       0       0       0       0  
Advertising expense
     0       0       0       0       0       0       0       0       0       0  
Postage expense
     0       0       0       0       0       0       0       0       0       0  
Professional fees
     0       0       0       0       0       0       0       0       0       0  
Consultant fees
     0       0       0       0       0       1       0       0       0       0  
Fraud losses
     0       0       0       7       0       0       0       0       0       0  
Equipment expense
     0       0       0       0       0       0       0       0       0       0  
Telephone expense
     0       0       0       0       0       0       0       0       0       0  
Occupancy expense
     0       0       0       0       0       0       0       0       0       0  
Intercompany servicing fees
     0       0       0       118       0       0       0       0       0       0  
Other expenses
     0       0       0       0       0       0       0       0       0       0  
Total operating expenses
     0       0       0       125       0       2       0       0       0       0  
 
                                                                                
Reorg. exp. - Professional fees
     0       0       0       0       0       0       0       0       0       0  
Reorg. exp. - Severance
     0       0       0       0       0       0       0       0       0       0  
Reorg. exp. - Trustee quarterly fees
     0       0       0       0       0       0       0       0       0       0  
(Gain) loss on asset sales
     0       0       0       0       0       (106 )     0       0       0       0  
Reorganization items
     0       0       0       0       0       (106 )     0       0       0       0  
 
                                                                                
Pretax income (loss)
      0       (0 )     (0 )     342       104       104       (0 )     0       0       0  
 
                                                                                
Income tax expense (benefit)
      0       0       0       0       0       0       0       0       0       0  
 
                                                                                
Net income (loss)
   $ 0     $ (0 )   $ (0 )   $ 342     $ 104     $ 104     $ (0 )   $ 0     $ 0     $ 0  
Note: The Income Statements were prepared on an accrual basis and include the financial results for the Debtor entities. The statements do not eliminate intercompany revenues,
costs or management fees. These Income Statements do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent
the consolidated financial results of Advanta Corp.
 

MOR-2a
 
 


United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010
INCOME STATEMENTS
FOR THE PERIOD FROM PETITION DATE THROUGH JUNE 30, 2010
(Unaudited)
   
Advanta Corp.
    
Advanta Business
Services Holding Corp.
    
Advanta
Business
Services Corp.
    
Advanta
Shared
Services Corp.
    
Advanta
Service Corp.
    
Advanta
Advertising Inc.
    
Advantennis
Corp.
    
Advanta
Investment Corp.
    
Advanta Mortgage
Holding Co.
  
(In thousands)
  
09-13931 (KJC)
    
09-13935 (KJC)
    
09-13933 (KJC)
    
09-13934 (KJC)
    
09-13932 (KJC)
    
09-13943 (KJC)
    
09-13941 (KJC)
    
09-13942 (KJC)
    
09-13938 (KJC)
  
                                                       
Net interest income
   $ 155     $ 33     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
                                                                         
Provision for credit losses
     0       0       0       0       0       0       0       0       0  
                                                                         
Net interest income after provision for credit losses
     155       33       0       0       0       0       0       0       0  
                                                                         
Noninterest revenues (losses):
                                                                        
 Securitization income
     0       2,050       0       0       0       0       0       0       0  
 Other revenues, net:
                                                                        
 Insurance revenues, net
     0       0       0       0       0       0       0       0       0  
 Equity in earnings of subs
     (250,607 )     17       0       0       0       (2,384 )     0       (0 )     1  
 Intercompany management fees
     155       0       0       7,169       0       0       0       0       0  
 Other noninterest revenue
     128       0       23       0       0       0       0       0       0  
 Total other revenues, net
     (250,324 )     17       23       7,169       0       (2,384 )     0       (0 )     1  
                                                                         
Total noninterest revenues (losses)
     (250,324 )     2,067       23       7,169       0       (2,384 )     0       (0 )     1  
                                                                         
Operating expenses:
                                                                        
Personnel expense
     3,750       0       0       1,939       0       0       0       0       0  
External processing
     18       0       0       35       0       0       0       0       0  
Advertising expense
     1       0       0       6       0       0       383       0       0  
Postage expense
     6       0       0       9       0       0       0       0       0  
Professional fees (A)
     64       0       0       (301 )     0       0       0       0       0  
Consultant fees
     807       0       0       25       0       0       0       0       0  
Fraud losses
     0       0       0       0       0       0       0       0       0  
Equipment expense
     66       0       0       744       2       0       0       0       0  
Telephone expense
     8       0       0       116       0       0       0       0       0  
Occupancy expense
     75       0       0       2,985       2       0       0       0       0  
Intercompany servicing fees
     6,568       0       0       0       0       0       0       0       0  
Visa indemnification
     (1,013 )     0       0       0       0       0       0       0       0  
Other expenses
     1,733       0       5       1,467       0       0       2,000       0       0  
Total operating expenses
     12,082       0       5       7,025       5       0       2,383       0       0  
                                                                         
Reorg. exp. - Professional fees
     11,630       0       0       0       0       0       0       0       0  
Reorg. exp. - Severance
     1,075       0       0       480       0       0       0       0       0  
Reorg. exp. - Trustee quarterly fees
     31       1       1       24       1       1       1       1       1  
Reorg. exp. - Other
     5       0       0       0       0       0       0       0       0  
(Gain) loss on asset sales
     (219 )     0       0       1,356       11       0       0       0       0  
Reorganization items
     12,522       1       1       1,860       12       1       1       1       1  
                                                                         
Pretax income (loss)
     (274,773 )     2,099       17       (1,716 )     (17 )     (2,385 )     (2,384 )     (1 )     (0 )
                                                                         
Income tax expense (benefit)
     (50,272 )     0       0       0       0       0       0       0       0  
                                                                         
Net income (loss)
   $ (224,501 )   $ 2,099     $ 17     $ (1,716 )   $ (17 )   $ (2,385 )   $ (2,384 )   $ (1 )   $ (0 )

Note: The Income Statements were prepared on an accrual basis and include the financial results for the Debtor entities. The statements do not eliminate intercompany revenues,
costs or management fees. These Income Statements do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent the
consolidated financial results of Advanta Corp.

(A) In March 2010, Advanta Shared Services Corp. reversed $897 thousand of accrued audit fees, $697 thousand of which had been accrued pre-petition, when it was
determined that an audit of fiscal year 2009 would not be needed for a Form 10-K.
 

MOR-2b
 
 


United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010
INCOME STATEMENTS
FOR THE PERIOD FROM PETITION DATE THROUGH JUNE 30, 2010
(Unaudited)
   
Advanta Auto
Finance Corp.
    
Advanta Mortgage
Corp. USA
    
Advanta
Finance
Corp.
    
Advanta
Credit Card
Rec. Corp.
    
Advanta
Ventures Inc.
    
BE Corp.
    
ideablob
Corp.
    
Great
Expectations
Int'l Inc.
    
Great
Expectations
Franchise Corp.
    
Great
Expectations
Mgmt. Corp.
  
(In thousands)
  
09-13939 (KJC)
    
09-13937 (KJC)
    
09-13944 (KJC)
    
09-14127 (KJC)
    
09-14125 (KJC)
    
09-14130 (KJC)
    
09-14129 (KJC)
    
09-13945 (KJC)
    
09-13936 (KJC)
    
09-13940 (KJC)
  
                                                             
Net interest income
   $ 0     $ 0     $ 0     $ 3,951     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
                                                                                 
Provision for credit losses
     0       0       0       3,883       0       0       0       0       0       0  
                                                                                 
Net interest income after provision for credit losses
     0       0       0       67       0       0       0       0       0       0  
                                                                                 
Noninterest revenues (losses):
                                                                                
 Securitization income
     0       0       0       0       0       0       0       0       0       0  
 Other revenues, net:
                                                                                
 Insurance revenues, net
     0       0       0       21       0       0       0       0       0       0  
 Equity in earnings of subs
     0       (1 )     0       0       (74 )     0       0       (4 )     0       0  
 Intercompany management fees
     0       0       0       0       0       0       0       0       0       0  
 Other noninterest revenue
     5       0       0       41       0       0       0       0       0       0  
 Total other revenues, net
     5       (1 )     0       62       (74 )     0       0       (4 )     0       0  
                                                                                 
Total noninterest revenues (losses)
     5       (1 )     0       62       (74 )     0       0       (4 )     0       0  
                                                                                 
Operating expenses:
                                                                                
Personnel expense
     0       0       0       0       0       (34 )     (79 )     0       0       0  
External processing
     0       0       0       0       0       0       0       2       1       0  
Advertising expense
     0       0       0       0       0       2       0       0       0       0  
Postage expense
     0       0       0       0       0       0       0       0       0       0  
Professional fees
     0       0       0       0       0       1       1       0       0       0  
Consultant fees
     0       0       0       0       0       16       1       0       0       0  
Fraud losses
     0       0       0       8       0       0       0       0       0       0  
Equipment expense
     0       0       0       0       0       48       0       0       0       0  
Telephone expense
     0       0       0       0       0       1       (0 )     0       0       0  
Occupancy expense
     0       0       0       0       0       0       0       0       0       0  
Intercompany servicing fees
     0       0       0       1,041       0       0       0       0       0       0  
Visa indemnification
     0       0       0       0       0       0       0       0       0       0  
Other expenses
     1       0       0       4       0       56       7       0       0       0  
Total operating expenses
     1       0       0       1,053       0       91       (70 )     2       2       0  
                                                                                 
Reorg. exp. - Professional fees
     0       0       0       0       0       0       0       0       0       0  
Reorg. exp. - Severance
     0       0       0       0       0       59       97       0       0       0  
Reorg. exp. - Trustee quarterly fees
     1       1       1       1       1       2       1       0       2       0  
Reorg. exp. - Other
     0       0       0       0       0       0       0       0       0       0  
(Gain) loss on asset sales
     0       0       0       0       0       (106 )     0       0       0       0  
Reorganization items
     1       1       1       1       1       (45 )     98       0       2       0  
                                                                                 
Pretax income (loss)
     3       (2 )     (1 )     (924 )     (75 )     (45 )     (29 )     (5 )     (4 )     0  
                                                                                 
Income tax expense (benefit)
     0       0       0       0       0       0       0       0       0       0  
                                                                                 
Net income (loss)
   $ 3     $ (2 )   $ (1 )   $ (924 )   $ (75 )   $ (45 )   $ (29 )   $ (5 )   $ (4 )   $ 0  

Note: The Income Statements were prepared on an accrual basis and include the financial results for the Debtor entities. The statements do not eliminate intercompany revenues,
costs or management fees. These Income Statements do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent the
consolidated financial results of Advanta Corp.


MOR-2b
 
 


United States Bankruptcy Court
District of Delaware
 
Chapter 11
In Re: Advanta Corp., et al.
Case No. 09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

BALANCE SHEETS
AS OF JUNE 30, 2010
(Unaudited)
(In thousands)
  
Advanta Corp.
    
Advanta Business
Services
Holding Corp.
    
Advanta
Business
Services Corp.
    
Advanta
Shared
Services Corp.
    
Advanta
Service Corp.
    
Advanta
Advertising Inc.
    
Advantennis
Corp.
    
Advanta
Investment Corp.
    
Advanta Mortgage
Holding Co.
  
   
09-13931 (KJC)
    
09-13935 (KJC)
    
09-13933 (KJC)
    
09-13934 (KJC)
    
09-13932 (KJC)
    
09-13943 (KJC)
    
09-13941 (KJC)
    
09-13942 (KJC)
    
09-13938 (KJC)
  
ASSETS
                                                      
Cash:
                                                      
 Intercompany cash at Advanta Bank Corp.
   $ 10     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
 External cash
     28,018       1,322       844       138       2       1       61       5       0  
 Total cash
     28,028       1,322       844       138       2       1       61       5       0  
Intercompany restricted interest-bearing deposits at Advanta Bank Corp.
     1,200       0       0       0       0       0       0       0       0  
Investments available for sale
     79,548       0       0       0       0       0       0       0       0  
Receivables, net
     1,249       0       0       0       0       0       0       0       0  
Premises and equipment:
                                                                        
 Premises and equipment, gross
     206       0       0       4,256       0       0       0       0       0  
 Accumulated depreciation
     (170 )     0       0       (0 )     0       0       0       0       0  
 Premises and equipment, net
     36       0       0       4,256       0       0       0       0       0  
Other assets:
                                                                        
 Investment in subsidiaries
     (99,255 )     5,599       0       0       0       (16,263 )     0       52       19,873  
 Charged-off receivable asset
     786       0       0       0       0       0       0       0       0  
 Intercompany receivables
     179,310       0       15,774       6,389       190       0       0       711       0  
 Tax assets
     7,942       25,790       0       1,090       4,324       0       4,276       0       0  
 Other assets
     49,072       5,926       0       513       0       0       0       0       0  
 Total other assets
     137,856       37,314       15,774       7,992       4,514       (16,263 )     4,276       763       19,873  
Total assets
   $ 247,915     $ 38,637     $ 16,619     $ 12,386     $ 4,516     $ (16,262 )   $ 4,338     $ 768     $ 19,873  
                                                                         
LIABILITIES NOT SUBJECT TO COMPROMISE
                                                                        
Intercompany line of credit payable
   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
Intercompany advance payables
     176       1       7       993       1       1       1       1       1  
Other liabilities
     9,089       0       0       900       0       0       0       0       0  
Total liabilities not subject to compromise
     9,265       1       7       1,893       1       1       1       1       1  
                                                                         
LIABILITIES SUBJECT TO COMPROMISE
                                                                        
Debt (A)
     135,709       0       0       0       0       0       0       0       0  
Intercompany line of credit payable
     0       0       0       537       0       0       3,212       0       0  
Subordinated debt payable to preferred securities trust
     92,290       0       0       0       0       0       0       0       0  
Other liabilities:
                                                                        
 Intercompany advance payables
     454       34,715       6       9,505       27,438       2,006       17,388       19,566       7,025  
 Current income taxes payable
     18,534       12,116       10,954       931       0       0       0       20,497       2,263  
 Unrecognized tax benefits
     14,886       0       0       0       0       0       0       0       0  
 Other liabilities
     32,271       0       53       745       2       0       0       0       0  
 Total other liabilities
     66,145       46,831       11,012       11,182       27,440       2,006       17,388       40,063       9,288  
Total liabilities subject to compromise
     294,144       46,831       11,012       11,719       27,440       2,006       20,600       40,063       9,288  
                                                                         
Total liabilities
     303,410       46,832       11,020       13,612       27,441       2,007       20,601       40,064       9,289  
                                                                         
Stockholders' equity
     (55,494 )     (8,195 )     5,599       (1,226 )     (22,925 )     (18,269 )     (16,263 )     (39,296 )     10,584  
                                                                         
Total liabilities and equity
   $ 247,915     $ 38,637     $ 16,619     $ 12,386     $ 4,516     $ (16,262 )   $ 4,338     $ 768     $ 19,873  

Note: The Balance Sheets were prepared on an accrual basis and include the financial results of the Debtor entities. The Statements do not eliminate intercompany assets, intercompany liabilities or investments in subsidiaries. These Balance Sheets do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent the consolidated financial results of Advanta Corp. Intercompany receivables on the Balance Sheets of the Debtors are not reduced by a reserve for uncollectible amounts. The full amounts of intercompany receivables may not be collectible.

(A) In January 2010, $2.4 million of Advanta Corp. outstanding checks to retail noteholders were reclassified from cash to debt on the Balance Sheet.

MOR-3a
 
 


United States Bankruptcy Court
District of Delaware
 
Chapter 11
In Re: Advanta Corp., et al.
Case No. 09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

BALANCE SHEETS
AS OF JUNE 30, 2010
(Unaudited)

(In thousands)
  
Advanta Auto
Finance Corp.
    
Advanta Mortgage
Corp. USA
    
Advanta
Finance
Corp.
    
Advanta
Credit Card
Rec. Corp.
    
Advanta
Ventures Inc.
    
BE Corp.
    
ideablob
Corp.
    
Great
Expectations
Int'l Inc.
    
Great
Expectations
Franchise Corp.
    
Great
Expectations
Mgmt. Corp.
  
   
09-13939 (KJC)
    
09-13937 (KJC)
    
09-13944 (KJC)
    
09-14127 (KJC)
    
09-14125 (KJC)
    
09-14130 (KJC)
    
09-14129 (KJC)
    
09-13945 (KJC)
    
09-13936 (KJC)
    
09-13940 (KJC)
  
ASSETS
                                                            
Cash:
                                                            
 Intercompany cash at Advanta Bank Corp.
   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
 External cash
     84       50       5       17       0       106       66       0       0       0  
 Total cash
     84       50       5       17       0       106       66       0       0       0  
Intercompany restricted interest-bearing deposits at Advanta Bank Corp.
     0       0       0       0       0       0       0       0       0       0  
Investments available for sale
     0       0       0       0       0       0       0       0       0       0  
Receivables, net
     0       0       0       25,762       0       0       0       0       0       0  
Premises and equipment:
                                                                                
 Premises and equipment, gross
     0       0       0       0       0       0       0       0       0       0  
 Accumulated depreciation
     0       0       0       0       0       0       0       0       0       0  
 Premises and equipment, net
     0       0       0       0       0       0       0       0       0       0  
Other assets:
                                                                                
 Investment in subsidiaries
     0       48,068       0       0       (18,494 )     0       0       1       0       0  
 Charged-off receivable asset
     0       0       0       0       0       0       0       0       0       0  
 Intercompany receivables
     6       0       44,468       0       0       0       0       0       1       0  
 Tax assets
     0       20,285       4,859       5,544       0       0       0       0       0       0  
 Other assets
     0       0       0       258       0       0       0       0       0       0  
 Total other assets
     6       68,352       49,327       5,802       (18,494 )     0       0       1       1       0  
Total assets
   $ 90     $ 68,402     $ 49,332     $ 31,581     $ (18,494 )   $ 106     $ 66     $ 1     $ 1     $ 0  
                                                                                 
LIABILITIES NOT SUBJECT TO COMPROMISE
                                                                                
Intercompany line of credit payable
   $ 0     $ 0     $ 0     $ 0     $ 0     $ 42     $ 0     $ 0     $ 0     $ 0  
Intercompany advance payables
     2       1       1       1,041       1       37       43       0       0       0  
Other liabilities
     0       0       0       0       0       12       93       0       0       0  
Total liabilities not subject to compromise
     2       1       1       1,042       1       91       136       0       0       0  
                                                                                 
LIABILITIES SUBJECT TO COMPROMISE
                                                                                
Debt
     0       0       0       0       0       0       0       0       0       0  
Intercompany line of credit payable
     0       0       0       24,103       0       137       15,099       0       0       0  
Subordinated debt payable to preferred securities trust
     0       0       0       0       0       0       0       0       0       0  
Other liabilities:
                                                                                
 Intercompany advance payables
     2       46,357       965       10,525       0       2,099       1,060       0       0       0  
 Current income taxes payable
     906       0       0       0       0       0       0       0       0       0  
 Unrecognized tax benefits
     0       0       0       0       0       0       0       0       0       0  
 Other liabilities
     0       1,350       299       0       0       30       13       0       0       0  
 Total other liabilities
     909       47,706       1,264       10,525       0       2,129       1,073       0       0       0  
Total liabilities subject to compromise
     909       47,706       1,264       34,628       0       2,266       16,172       0       0       0  
                                                                                 
Total liabilities
     911       47,708       1,265       35,670       1       2,358       16,308       0       0       0  
                                                                                 
Stockholders' equity
     (821 )     20,695       48,068       (4,089 )     (18,495 )     (2,251 )     (16,243 )     1       1       0  
                                                                                 
Total liabilities and equity
   $ 90     $ 68,402     $ 49,332     $ 31,581     $ (18,494 )   $ 106     $ 66     $ 1     $ 1     $ 0  

Note: The Balance Sheets were prepared on an accrual basis and include the financial results of the Debtor entities. The Statements do not eliminate intercompany assets, intercompany liabilities or investments in subsidiaries. These Balance Sheets do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent the consolidated financial results of Advanta Corp. Intercompany receivables on the Balance Sheets of the Debtors are not reduced by a reserve for uncollectible amounts. The full amounts of intercompany receivables may not be collectible.

MOR-3a
 
 


United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010

BALANCE SHEETS
AS OF PETITION DATE
(Unaudited)
(In thousands)
Advanta Corp.
  
Advanta Business
Services
Holding Corp.
  
Advanta Business
Services Corp.
  
Advanta Shared
Services Corp.
  
Advanta
Service Corp.
  
Advanta
Advertising Inc.
  
Advantennis
Corp.
    
Advanta
Investment Corp.
    
Advanta
Mortgage
Holding Co.
  
 
09-13931 (KJC)
  
09-13935 (KJC)
  
09-13933 (KJC)
  
09-13934 (KJC)
  
09-13932 (KJC)
  
09-13943 (KJC)
  
09-13941 (KJC)
    
09-13942 (KJC)
    
09-13938 (KJC)
  
ASSETS
                                        
Cash:
                                        
 Intercompany cash at Advanta Bank Corp.
 $ 1,661   $ 0   $ 0   $ 23   $ 0   $ 0   $ 0     $ 0     $ 0  
 External cash
   19,025     6     820     343     2     1     61       5       0  
 Total cash
   20,686     6     820     366     2     1     61       5       0  
Intercompany restricted interest-bearing deposits at Advanta Bank Corp.
   1,258     0     0     0     0     0     0       0       0  
Investments available for sale
   78,254     0     0     0     0     0     0       0       0  
Receivables, net
   1,580     0     0     0     0     0     0       0       0  
Accounts receivable from securitizations
   0     5,350     0     0     0     0     0       0       0  
Premises and equipment:
                                                          
 Premises and equipment, gross
   516     0     0     17,763     653     0     0       0       0  
 Accumulated depreciation
   (350 )   0     0     (11,385 )   (638 )   0     0       0       0  
 Premises and equipment, net
   167     0     0     6,378     16     0     0       0       0  
Other assets:
                                                          
 Investment in subsidiaries
   (16,176 )   5,582     0     0     0     (13,879 )   0       52       19,873  
 Charged-off receivable asset
   2,445     0     0     0     0     0     0       0       0  
 Intercompany receivables
   197,621     0     15,774     1,293     190     0     0       711       0  
 Tax assets
   0     26,616     5,418     1,158     5,071     0     4,276       850       0  
 Other assets
   49,674     0     0     8,167     0     0     2,383       0       0  
 Total other assets
   233,564     32,198     21,193     10,617     5,261     (13,879 )   6,659       1,613       19,873  
Total assets
 $ 335,508   $ 37,554   $ 22,013   $ 17,362   $ 5,279   $ (13,878 ) $ 6,721     $ 1,618     $ 19,873  
                                                           
LIABILITIES SUBJECT TO COMPROMISE
                                                          
Debt
 $ 133,277   $ 0   $ 0   $ 0   $ 0   $ 0   $ 0     $ 0     $ 0  
Intercompany line of credit payable
   0     0     0     1,486     0     0     3,210       0       0  
Subordinated debt payable to preferred securities trust
   92,290     0     0     0     0     0     0       0       0  
Other liabilities:
                                                          
 Intercompany accrued interest payable
   0     0     0     1     0     0     2       0       0  
 Intercompany advance payables
   34     34,906     6     12,225     27,438     2,006     17,388       19,566       7,025  
 Current income taxes payable
   59,439     12,942     16,372     961     747     0     0       21,348       2,263  
 Unrecognized tax benefits
   14,886     0     0     0     0     0     0       0       0  
 Other liabilities
   34,644     0     53     2,199     2     0     0       0       0  
 Total other liabilities
   109,004     47,848     16,431     15,386     28,187     2,006     17,390       40,913       9,288  
Total liabilities subject to compromise
   334,570     47,848     16,431     16,872     28,187     2,006     20,600       40,913       9,288  
                                                           
Stockholders' equity
   938     (10,294 )   5,582     490     (22,908 )   (15,884 )   (13,879 )     (39,295 )     10,585  
                                                           
Total liabilities and equity
 $ 335,508   $ 37,554   $ 22,013   $ 17,362   $ 5,279   $ (13,878 ) $ 6,721     $ 1,618     $ 19,873  

Note: The Balance Sheets were prepared on an accrual basis and include the financial results for the Debtor entities. The statements do not eliminate intercompany assets, intercompany liabilities or investments in subsidiaries. These Balance Sheets do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent the consolidated financial results of Advanta Corp. Intercompany receivables on the Balance Sheets of the Debtors are not reduced by a reserve for uncollectible amounts. The full amounts of intercompany receivables may not be collectible.

MOR-3b
 
 


United States Bankruptcy Court
District of Delaware
In Re: Advanta Corp., et al.
Chapter 11
Debtors
Case No. 09-13931 (KJC)
 
Reporting Period: June 1, 2010 to June 30, 2010

BALANCE SHEETS
AS OF PETITION DATE
(Unaudited)
(In thousands)
  
Advanta Auto
Finance Corp.
    
Advanta Mortgage
Corp. USA
    
Advanta
Finance Corp.
    
Advanta
Credit Card
Rec. Corp.
    
Advanta
Ventures Inc.
    
BE Corp.
    
ideablob
Corp.
    
Great
Expectations
Int'l Corp.
    
Great
Expectations
Franchise Corp.
    
Great
Expectations
Mgmt. Corp.
  
   
09-13939 (KJC)
    
09-13937 (KJC)
    
09-13944 (KJC)
    
09-14127 (KJC)
    
09-14125 (KJC)
    
09-14130 (KJC)
    
09-14129 (KJC)
    
09-13945 (KJC)
    
09-13936 (KJC)
    
09-13940 (KJC)
  
ASSETS
                                                            
Cash:
                                                            
 Intercompany cash at Advanta Bank Corp.
   $ 2     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
 External cash
     78       50       5       21       0       (10 )     57       1       5       0  
 Total cash
     79       50       5       21       0       (10 )     57       1       5       0  
Intercompany restricted interest-bearing deposits at Advanta Bank Corp.
     0       0       0       0       0       0       0       0       0       0  
Investments available for sale
     0       0       0       0       0       0       0       0       0       0  
Receivables, net
     0       0       0       40,286       0       0       0       0       0       0  
Accounts receivable from securitizations
     0       0       0       0       0       0       0       0       0       0  
Premises and equipment:
                                                                                
 Premises and equipment, gross
     0       0       0       0       0       119       0       0       0       0  
 Accumulated depreciation
     0       0       0       0       0       (47 )     0       0       0       0  
 Premises and equipment, net
     0       0       0       0       0       72       0       0       0       0  
Other assets:
                                                                                
 Investment in subsidiaries
     0       48,069       0       0       (18,420 )     0       0       5       0       0  
 Charged-off receivable asset
     0       0       0       0       0       0       0       0       0       0  
 Intercompany receivables
     6       0       44,468       0       0       0       0       0       0       0  
 Tax assets
     430       22,311       6,634       5,544       0       0       0       0       0       0  
 Other assets
     0       0       0       458       0       10       0       0       0       0  
 Total other assets
     436       70,380       51,102       6,002       (18,420 )     10       0       5       0       0  
Total assets
   $ 515     $ 70,430     $ 51,107     $ 46,309     $ (18,420 )   $ 72     $ 57     $ 6     $ 5     $ 0  
                                                                                 
LIABILITIES SUBJECT TO COMPROMISE
                                                                                
Debt
   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
Intercompany line of credit payable
     0       0       0       40,402       0       137       15,072       0       0       0  
Subordinated debt payable to preferred securities trust
     0       0       0       0       0       0       0       0       0       0  
Other liabilities:
                                                                                
 Intercompany accrued interest payable
     0       0       0       4       0       0       27       0       0       0  
 Intercompany advance payables
     3       46,357       965       9,068       0       2,052       1,060       0       0       0  
 Current income taxes payable
     1,336       2,027       1,775       0       0       0       0       0       0       0  
 Unrecognized tax benefits
     0       0       0       0       0       0       0       0       0       0  
 Other liabilities
     0       1,350       299       0       0       89       113       0       0       0  
 Total other liabilities
     1,339       49,733       3,038       9,071       0       2,141       1,199       0       0       0  
Total liabilities subject to compromise
     1,339       49,733       3,038       49,474       0       2,278       16,271       0       0       0  
                                                                                 
Stockholders' equity
     (824 )     20,697       48,069       (3,165 )     (18,420 )     (2,206 )     (16,214 )     6       5       0  
                                                                                 
Total liabilities and equity
   $ 515     $ 70,430     $ 51,107     $ 46,309     $ (18,420 )   $ 72     $ 57     $ 6     $ 5     $ 0  

Note: The Balance Sheets were prepared on an accrual basis and include the financial results for the Debtor entities. The statements do not eliminate intercompany assets, intercompany liabilities or investments in subsidiaries. These Balance Sheets do not include the financial results of non-debtor entities controlled by the Debtors and therefore, do not represent the consolidated financial results of Advanta Corp. Intercompany receivables on the Balance Sheets of the Debtors are not reduced by a reserve for uncollectible amounts. The full amounts of intercompany receivables may not be collectible.

MOR-3b
 
 




UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In Re:
Chapter 11
Advanta Corp., et al.
Case No. 09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010


Declaration Regarding the Status of Post Petition Taxes of the Debtors
June 30, 2010


Philip M. Browne hereby declares and states:

I am Chief Financial Officer of Advanta Corp., a corporation organized under the laws of the state of Delaware, which along with certain of its affiliated debtors (collectively, the “Debtors”) are Debtors and Debtors in Possession in the above-captioned chapter 11 cases. In this capacity, I am familiar with Advanta Corp.’s day-to-day operations, businesses, financial affairs and books and records.

Except as otherwise indicated, all facts set forth in this declaration are based upon my personal knowledge of Advanta Corp.’s operations and finances, information learned from my review of relevant documents and information I have received from other members of management or the Debtors’ advisors. As a duly elected and qualified officer of Advanta Corp., I am authorized to submit this declaration on behalf of the Debtors and, if I were called upon to testify, I could and would testify competently to the facts set forth herein. I submit this declaration under penalty of perjury pursuant to 28 U.S.C. § 1746.

To the best of my knowledge, other than as described below, the Debtors have filed all necessary federal, state and local tax returns and made all required post-petition tax payments in connection therewith on a timely basis, or have promptly remediated any late filings or payments that may have occurred due to unintentional oversights. The Debtors, however, have not yet filed certain state and local combined tax returns for the year ended 12/31/2009 because those tax returns either have to be prepared by the Federal Deposit Insurance Corporation ("FDIC-R"), as receiver for Advanta Bank Corp., Advanta Corp.'s wholly-owned bank subsidiary, or require FDIC-R's signature or other information. The Debtors are working with the FDIC-R to complete these tax returns and arrange for payment of any taxes that may be due pursuant to such tax returns.


MOR-4
 
 


United States Bankruptcy Court
District of Delaware
In Re:
  
Chapter 11
Advanta Corp., et al.
  
Case No. 09-13931 (KJC)
Debtors
  
Reporting Period: Petition Date to June 30, 2010

Summary of Unpaid Post Petition Accounts Payable


 
Current
1 - 30
31 - 60
61 - 90
 Over 90
 Total
Combined Debtors
             $          -


The post petition accounts payable report represents open and outstanding trade vendor invoices that have been entered into the accounts payable system. This summary does not include accruals for invoices not yet received or approved and therefore will differ from the balance sheet on MOR-3a.

 
 
 
 
 
 
 

MOR-4
 
 


United States Bankruptcy Court
District of Delaware
In Re:
Chapter 11
Advanta Corp., et al.
Case No. 09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010


Accounts Receivable Reconciliation and Aging

Accounts Receivable Reconciliation
    
Total Accounts Receivable at beginning of the reporting period
 $ 32,931,724  
 + Amounts billed during the period
   477,065  
 - Amounts collected during the period
   (1,612,954 )
 - Other adjustments to Accounts Receivable, including credit memos, discounts
   (714,564 )
Total Accounts Receivable at ending of the reporting period
 $ 31,081,271  
       
Accounts Receivable Aging
      
0-30 days old
 $ 27,442,847  
31-60 days old
   1,568,937  
61-90 days old
   1,136,291  
91 + days old
   933,196  
Total Accounts Receivable
   31,081,271  
Amounts considered uncollectible (Bad Debt)
   (4,070,561 )
Accounts Receivable (Net)
 $ 27,010,710  

Accounts Receivable above does not include intercompany receivables.
 
 
 
 
 
 
 
 

 

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United States Bankruptcy Court
District of Delaware
In Re:
Chapter 11
Advanta Corp., et al.
Case No. 09-13931 (KJC)
Debtors
Reporting Period: June 1, 2010 to June 30, 2010

Debtor Questionnaire
For the Month Ended June 30, 2010

1
Have any assets been sold or transferred outside the normal course of business this reporting period?  If yes, attach explanation. (A) (B)
Y
2
Have any funds been disbursed from any account other than a debtor in possession account this reporting period?  If yes, attach explanation.
N
3
Have all postpetition tax returns been timely filed?  If no, attach explanation. (C)
N
4
Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, attach explanation.
Y
5
Has any bank account been opened during the reporting period?  If yes, provide documentation identifying the opened account(s).  If an investment account has been opened, provide the required documentation pursuant to Delaware Local Rule 4001-3.
N

(A)
In June 2010, assets of BizEquity Corp., including intellectual property, trademarks, software and web domains, were sold to EMG Technologies, LLC, pursuant to an order of the Court authorizing such sale.  Sales proceeds were $106,000.  The name of BizEquity Corp. was changed to BE Corp. effective June 25, 2010.
   
(B)
In June 2010, an auction sale, pursuant to an order of the Court authorizing such sale, was conducted for various assets, including autos, office furniture, and technology equipment of several of the Debtors, primarily Advanta Corp. and Advanta Shared Services Corp.  Net sales proceeds from the auction were $80,831 and were received by the Debtors in July 2010.
   
(C)
The Debtors have not yet filed certain state and local combined tax returns for the year ended 12/31/2009 because those tax returns either have to be prepared by the FDIC-R, as receiver for Advanta Bank Corp., Advanta Corp.'s wholly-owned bank subsidiary, or require FDIC-R's signature or other information.  The Debtors are working with the FDIC-R to complete these tax returns and arrange for payment of any taxes that may be due pursuant to such tax returns.




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