Advanta shed more light on the deterioration of its business credit card portfolio and its decision to shut down all credit card accounts for future use on June 10th. The Companyâs securitization trust will go into early amortization on June 10th based on Mayâs performance.
Advanta is also going to use up to $1.4 billion to buy the “Class A” senior notes at a discount of 25% to 35% of their face value in a modified “Dutch Auction.” In filings with the SEC, the “Advanta Business Card Master Trust” had a receivables balance of $4.5 billion as of April 30th. The default rate for April was 20.15%, compared to 17.31% for March. The aggregate outstanding balance of the accounts which were delinquent 90 days or greater as of the end of April was 5.97% of total Receivables as compared to 5.96% as of the end of March. The aggregate outstanding balance of the accounts which were delinquent 30 days or greater as of the end of April was 11.54% of total receivables, as compared to 11.92% as of the end of March. Overall, Advanta reported a first quarter net loss of $75.9 million, a 62% sequential increase. Managed charge-offs soared to 16% from 12% in the prior quarter and compared to 6% one-year ago. For complete details on Advanta’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)).
Source: CardData (www.carddata.com)