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

December 2012

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 Trustee11 of the AC Trust, ASSC Trust and Advanta Auto Finance Trust has made a second Distribution of certain Liquidating Trust Assets to Liquidating Trust Beneficiaries holding Allowed Claims (the "Second Distribution").

The Second Distribution represents the following recoveries:

  • Retail Note claims against the AC Trust recovered 28.1 cents on the dollar;
  • General unsecured claims against the AC Trust recovered 16.7 cents on the dollar;
  • General unsecured claims against ASSC Trust recovered 1.5 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 Initial Distribution and the Second Distribution together represent the following cumulative recoveries:

  • Retail Note claims against the AC Trust recovered 65.7 cents on the dollar;
  • General unsecured claims against the AC Trust recovered 38.9 cents on the dollar;
  • General unsecured claims against ASSC Trust recovered 85.2 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 Second 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, Unresolved Claims 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 after, among other things, resolution of the remaining Unresolved Claims and as Liquidating Trust Assets are monetized.

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

[SECOND DISTRIBUTION ANALYSIS]

Further to the Second 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 claims of the Federal Deposit Insurance Corporation and 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 1-646-576-8146. Please refrain from calling Wilmington Trust as they do not have further information on these cases.


1Unless otherwise defined herein, capitalized terms shall bear the meaning ascribed to them in the Plan.


The Effective Date for the Debtors' Joint Plan Under Chapter 11 of the Bankruptcy Code Occurred on February 28, 2011



Advanta Corp. Files to Reorganize Under Chapter 11 to Preserve Stakeholder Value