SVB Financial, the former parent company of Silicon Valley Bank (SVB), filed for Chapter 11 bankruptcy on Friday.
The filing in a U.S. bankruptcy court in New York did not include SVB,
its broker-dealer SVB Securities, or its venture-capital arm SVB
Capital, all of which continue to operate as normal.
- The
parent company said it believes it has about $2.2B in liquidity, $3.3B
in unsecured debt, and $3.7B of preferred equity outstanding.
- Its chief restructuring officer, William Kosturos, said
the bankruptcy process will allow the group to "evaluates strategic
alternatives" for SVB Capital, SVB Securities, and its other assets and
businesses.
- SVB is no longer affiliated with SVB Financial
after the bank was seized by the FDIC a week ago, marking the
second-largest bank crash in U.S. history. SVB Financial's bankruptcy
process is separate from the FDIC's sale of assets to repay SVB
depositors.
- SVB's successor, Silicon Valley Bridge Bank, was not included in the Chapter 11 filing and will continue to operate normally.
- Earlier this week, shareholders filed a class-action lawsuit
against SVB Financial, along with its CEO and CFO, accusing the company
of understating the risks that anticipated interest rate hikes by the
Fed would have on its business.
