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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): December 27, 2000
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Advanta Corp.
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(Exact name of registrant as specified in its charter)
Delaware 0-14120 23-1462070
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
Welsh and McKean Roads, P.O. Box 844, Spring House, PA 19477
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 657-4000
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Form 8-K Advanta Corp.
December 27, 2000
ITEM 5. OTHER EVENTS
On December 27, 2000, Advanta Corp. received notice of the
filing of a complaint in the United States District Court for the Northern
District of Illinois in the case captioned Banc One Financial Services, Inc. and
Bank One, N.A. v. Advanta Mortgage Corp. USA and Advanta Corporation (Case No.
OOC-8027). According to the documents sent to Advanta Mortgage Corp. USA
("AMCUSA") and Advanta Corp. (together, "Advanta"), the complaint was filed on
December 21, 2000.
In the complaint, the plaintiffs assert, among other things,
that AMCUSA breached the terms of two loan servicing agreements, pursuant to
which AMCUSA had agreed to service mortgage loans owned by the plaintiffs, and
that AMCUSA wrongfully withheld as termination fees an amount in excess of $23
million from amounts that AMCUSA had collected for plaintiffs under the loan
servicing agreements. Advanta has not yet filed with the court an answer to the
complaint but disputes the plaintiffs' allegations and intends to vigorously
defend the litigation. Advanta believes that the plaintiffs' claims have no
merit and that Advanta will prevail in the lawsuit. Specifically, Advanta denies
that AMCUSA breached the terms of the loan servicing agreements and that it
wrongfully withheld any funds owed to plaintiffs. Advanta believes that it
rightfully withheld the funds sought by plaintiffs in order to satisfy, in part,
termination fees that it is owed under the loan servicing agreements. Management
expects that the ultimate resolution of this litigation will not have a material
adverse effect on the financial position or future operating results of Advanta.
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.
Additional risks that may affect Advanta Corp.'s future performance are detailed
in Advanta Corp.'s filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and its Quarterly Reports
on Form 10-Q.
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Form 8-K Advanta Corp.
December 27, 2000
Form 8-K Advanta Corp. April 21, 1998
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Advanta Corp.
By: /S/ Elizabeth H. Mai
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Elizabeth H. Mai, Senior Vice President,
Secretary and General Counsel
December 29, 2000
