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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 1999
Advanta Mortgage Conduit Services, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 23-2723382
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(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
10790 Rancho Bernardo Road, San Diego, CA 92127
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(Address of principal executive offices) (Zip Code)
Advanta Conduit Receivables, Inc.
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(Exact name of registrant as specified in its charter)
Nevada 88-0360305
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(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
c/o Griffin Corporate Services,
639 Isbell Road, Suite 390, Reno, Nevada 89509
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(Address of principal executive offices) (Zip Code)
333-52351
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(Commission
File Number)
Registrant's telephone number, including area code: (619) 674-3800
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Item 5. Other Events
Advanta Mortgage Conduit Services, Inc. (the "Sponsor") and Advanta Conduit
Receivables Inc. (together with the Sponsor, the "Registrants") are indirect
subsidiaries of Advanta Corp., a Delaware corporation ("Advanta Corp."), a
publicly-traded company with its principal executive offices located in Spring
House, Pennsylvania. The Sponsor is a direct subsidiary of Advanta Mortgage
Corp. USA (the "Master Servicer"). The Master Servicer services mortgage loans
securitized by the Sponsor.
On January 25, 1999 Advanta Corp. reported that on Friday, January 22, 1999,
Fleet Financial Group, Inc. and certain of its affiliates ("Fleet") filed a
complaint (the "Complaint") against Advanta Corp. and certain of its affiliates
(including Advanta National Bank, which is one of the Affiliated Originators)
relating to the transaction with Fleet which closed on February 20, 1998 in
which Advanta Corp. contributed most of its consumer credit card business to a
limited liability company owned by Fleet (the "Fleet Transaction"). The
Complaint centers around post-closing adjustments to the transaction and other
matters relating to the Fleet Transaction.
Advanta Corp. believes that the lawsuit is inappropriate and without merit and,
on February 16, 1999 it filed its answer and counterclaims in which it denies
all of the substantive allegations in the Complaint and seeks damages from
Fleet. Advanta Corp. does not expect this suit to have any material adverse
financial impact on its business.
The ability of Advanta Corp.'s subsidiaries to honor their financial and other
obligations is to some extent influenced by the financial condition of Advanta
Corp. Such obligations primarily consist of the Sponsor's obligation to
repurchase mortgage loans which are inconsistent with the representations and
warranties set forth in certain agreements relating to securities issued by
trusts sponsored by the Sponsor as well as the obligations of the Master
Servicer pursuant to certain agreements relating to securities issued by such
trusts.
This Report on Form 8-K contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The most significant among these risks and
uncertainties is the uncertainty of the legal process.
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Form 8-K Advanta Mortgage Conduit Services, Inc.
February 26, 1999 Advanta Conduit Receivables Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Advanta Mortgage Conduit Services, Inc.
By: /s/ Michael Coco
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Michael Coco
Vice President
Advanta Conduit Receivables, Inc.
By: /s/ Michael Coco
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Michael Coco
Vice President
February 26, 1999
