Information Regarding Liquidating Trust Assets

The Trustee1 of the AC Trust expects to consummate a transaction (the “Expected Transaction”) and, as a result, the Trustee has reason to believe that holders of AC Beneficial Interests on account of Allowed Investment Note Claims and Allowed RediReserve Certificate Claims will receive a further distribution or distributions that, when aggregated with previous distributions, will yield a 100% recovery of the principal and accrued prepetition interest of their Allowed Claims. Additional assets may be available from the other remaining Trusts for monetization and potential distributions to the holders of Liquidating Trust Beneficial Interests or Advanta Trust Beneficial Interests on account of Allowed General Unsecured Claims or Allowed Subordinated Note Claims.

Third Distribution of Certain Liquidating Trust Assets to Liquidating Trust Beneficiaries holding Allowed Claims

Pursuant to and in accordance with the Joint Plan of Advanta Corp., et al., under Chapter 11 of the Bankruptcy Code (as supplemented, modified, or amended, the "Plan"), the Trustee2 of the AC Trust and ASSC Trust has made a third Distribution of certain Liquidating Trust Assets to Liquidating Trust Beneficiaries holding Allowed Claims (the “Third Distribution”).

The Third Distribution represents the following recoveries:

  • Retail Note claims against the AC Trust recovered 17.5 cents on the dollar;
  • General unsecured claims against the AC Trust recovered 10.4 cents on the dollar; and
  • General unsecured claims against ASSC Trust recovered 1.0 cent on the dollar

The Initial Distribution, the Second Distribution and the Third Distribution altogether represent the following cumulative recoveries:

  • Retail Note claims against the AC Trust recovered 83.2 cents on the dollar;
  • General unsecured claims against the AC Trust recovered 49.3 cents on the dollar;
  • General unsecured claims against ASSC Trust recovered 86.2 cents on the dollar;
  • General unsecured claims against the Advanta Finance Trust recovered 100 cents on the dollar;
  • General unsecured claims against the AMCUSA Trust recovered 100 cents on the dollar; and

The Third Distribution was made in accordance with the terms of the Plan and reflects total cash available for distribution after accounting for appropriate and necessary reserves. Such reserves account for, among other things, winding up of the taxation and other corporate affairs of Advanta Corp and its remaining subsidiaries, other outstanding issues and prospective Trust expenses. The Trustee expects to make additional distributions to Liquidating Trust Beneficiaries holding Allowed Claims in accordance with the terms of the Plan as Liquidating Trust Assets are monetized.

Please follow the link below to view the Third Distribution Analysis.

[THIRD DISTRIBUTION ANALYSIS]

Further to the Third Distribution made to holders, the Trustee and its professionals are continuing to work in close consultation with the Trust Advisory Board on all remaining matters that require resolution to enable further distributions to be made, including, most significantly, the timing of the monetization of the Visa shares that have ownership restrictions pending conclusion of litigation. At this time, however, these issues remain unresolved and the Trustee is not yet in a position to provide additional information regarding the timing or amount of further distributions. The Trustee will seek to make distributions as quickly as practicable when funds become available. The Trustee will announce further updates on the website http://www.advantareorg.com as material events occur.

If you have any questions or would like additional information, please email us at LTRequest@acliquidatingtrust.com, or call the creditor hotline at 1-866-697-5647. Please refrain from calling Wilmington Trust as they do not have further information on these cases.


1Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Joint Plan of Advanta Corp., et al., under Chapter 11 of the Bankruptcy Code (as supplemented, modified, or amended, the “Plan”).

2Unless otherwise defined herein, capitalized terms shall bear the meaning ascribed to them in the Plan.