SVB Financial Group, a former subsidiary of Silicon Valley Bank (SVB), filed insolvency petition in accordance with Chapter 11 of the United States Bankruptcy Code.
According to the petition, funds from SVB Capital’s venture arm, SVB Securities broker-dealer and limited partnerships are not included in the procedure.
Organizations will continue to operate as usual while SVB Financial Group explores strategic business alternatives.
The company emphasized that it is no longer associated with Silicon Valley Bank and its wealth and wealth management unit SVB Private.
The bank’s successor, Silicon Valley Bridge Bank, operates under the jurisdiction FDIC and is not included in a Chapter 11 application.
SVB Group estimates that it has a liquidity of $2.2 billion. In addition to its stake in SVB Capital and SVB Securities, its assets include “other investment accounts in securities and other assets,” for which it is also exploring strategic options.
SVB Group’s accumulated debt is ~$3.3bn in unsecured bonds, which are not entitled to claim the property of SVB Capital or SVB Securities. SVB Group also owns $3.7 billion of preferred shares.
The company intends to implement a court-controlled process to evaluate strategic alternatives for SVB Capital, SVB Securities and its other assets.
As a reminder, on March 10, the California Department of Financial Protection and Innovation closed the SVB and appointed the FDIC as administrator.
March 13 US Treasury, Fed and the FDIC announced the bailout of Silicon Valley Bank – depositors will have access to their funds at the expense of shareholders and some holders of unsecured bonds.
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SVB Financial Group, a former subsidiary of Silicon Valley Bank (SVB), filed insolvency petition in accordance with Chapter 11 of the United States Bankruptcy Code.
According to the petition, funds from SVB Capital’s venture arm, SVB Securities broker-dealer and limited partnerships are not included in the procedure.
Organizations will continue to operate as usual while SVB Financial Group explores strategic business alternatives.
The company emphasized that it is no longer associated with Silicon Valley Bank and its wealth and wealth management unit SVB Private.
The bank’s successor, Silicon Valley Bridge Bank, operates under the jurisdiction FDIC and is not included in a Chapter 11 application.
SVB Group estimates that it has a liquidity of $2.2 billion. In addition to its stake in SVB Capital and SVB Securities, its assets include “other investment accounts in securities and other assets,” for which it is also exploring strategic options.
SVB Group’s accumulated debt is ~$3.3bn in unsecured bonds, which are not entitled to claim the property of SVB Capital or SVB Securities. SVB Group also owns $3.7 billion of preferred shares.
The company intends to implement a court-controlled process to evaluate strategic alternatives for SVB Capital, SVB Securities and its other assets.
As a reminder, on March 10, the California Department of Financial Protection and Innovation closed the SVB and appointed the FDIC as administrator.
March 13 US Treasury, Fed and the FDIC announced the bailout of Silicon Valley Bank – depositors will have access to their funds at the expense of shareholders and some holders of unsecured bonds.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
