All Posts Tagged With: "cash and cash equivalents"
Advanta has filed for bankruptcy
Jennifer McClelland | RSS | Mon, Nov 09 2009 | 1 Comment
Advanta Corp is a company that offers small businesses credit cards in the United States. Yesterday the lender filed for bankruptcy protection. The company, in its filing with the U.S. Bankruptcy Court for the Deleware District, listed assets of $363 million and debts totaling $331 million.
The company came into hardships after many of its small business clients simply could no longer afford to pay the balance or the minimum payment on credit cards lent by the company because they had also come under economic hardships. According to the company, it is trying to collect $2.7 billion from the accounts of 360,000 customers. The accounts are closed to new charges, but the outstanding balance is killing the company.
It had decided to shut down its credit card lending business five months ago to try to keep something like this, or worse, a takeover of its bank by the FDIC, from happening. however, it appears as though the bank will likely be taken over by the FDIC shortly because its level of capital is below regulatory requirements.
The company said that it has almost $100 million in cash and cash equivalents available, but would not be capable of meeting all of the debt obligations that will become due. There are around $138 million of senior retail investment notes still outstanding. The company’s largest unsecured debt holder is the Bank of New York Melton; it is investing in $230 million in debt for the lender.
Due to the announcement, of course, the stock for the publicly traded company fell 70%. It fell from 25 cents to 8 cents after hitting its all time low of just seven and a half cents.
Not included in the bankruptcy filing is Advanta Bank Corp. Also, customers who are making payments to their credit cards need to continue making payments on time because this has no effect on those accounts.
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Tags: minimum payment on credit cards, bankruptcy protection, seven and a half cents
Crocs could be coming to an end.
Jennifer McClelland | RSS | Tue, Mar 24 2009 | 0 CommentsThe auditor for Crocs (those ridiculously ugly plastic shoes that people have no business wearing outside the garden or on rainy day) has said that it has “substantial doubt” that the shoe company will last.
However, there may still be some hope for the company. If it can successfully market its other style of shoes then perhaps they can “drum up” some demand.
The company was trading at $70 last year, but has fallen to just over $1 a share now.
The number of footwear units sold fell 24.7 percent over the year, the filing said. The company blamed deteriorating global economic conditions, falling demand and difficulty marketing its expanded product line.
Crocs said it must secure financing and maintain enough liquidity to pay obligations. It said it has $22.4 million in borrowings under a loan that matures April 2. As of Dec. 31, it had $51.6 million in cash and cash equivalents.
Through the end of 2007, Crocs grew so quickly it had difficulty meeting demand for its colorful, lightweight shoes, the company said in the SEC filing. It boosted production capacity, warehouse space and inventory, but revenue growth slid in 2008.
Here are some of the other shoes that Crocs has to offer for Women:
Are you buying a Porsche or a Croc?
Tags: warehouse space, crocs, lightweight shoes
