Silicon Valley Bank’s parent company files for bankruptcy
The parent company of Silicon Valley Bank, which collapsed last week, has filed for bankruptcy.
SVB Financial Group’s Chapter 11 bankruptcy filing on Friday puts them in court.
It comes exactly a week after the federal government seized the bank, upending the industry in the US and raising fears of bigger problems in the global banking system.
After the bank was taken over by the Swiss Federal Deposit Insurance Fund, it is no longer part of the SVB financial group.
The bankruptcy filing represents a legal showdown for the bank’s remaining assets between regulators aiming to help the holding company’s depositors and creditors.
Meanwhile, SVB Financial Group said it “believes it has approximately $2.2 billion in liquidity.” It claims its assets that may be up for sale include its venture capital, a private debt fund and a broker-dealer.
“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its valuable businesses and assets,” said William Kosturos, the company’s Chief Restructuring Officer.
SVB Financial Group had approximately $3.3 billion in outstanding debt and $3.7 billion in stock.
The Santa Clara-based bank, which operated for four decades, was the 16th largest bank in the US and a major lender to tech startups. It was the largest bank failure since the Great Recession of 2008 and the second largest bank failure in the country’s history.
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https://metro.co.uk/2023/03/17/silicon-valley-banks-parent-company-files-for-bankruptcy-18463659/ Silicon Valley Bank's parent company files for bankruptcy