SVB Financial Group, the company that owned bankrupt Silicon Valley Bank until the U.S. government took it over last week, has filed for Chapter 11 bankruptcy protection.
Silicon Valley Bank was not included in the bankruptcy filing in New York on Friday, March 17, 2023. Venture capital firm SVB Capital and broker-dealer SVB Securities, which will remain operational, were also not included in the Chapter 11 process.
Trading in the company's shares (SIVB) has been halted since Thursday, and bankruptcy was largely expected.
"The Chapter 11 process will allow SVB Financial Group to preserve value while it evaluates strategic alternatives for its valued businesses and assets, particularly SVB Capital and SVB Securities," William Kosturos, chief restructuring officer for SVB Financial Group, said in a statement.
"SVB Capital and SVB Securities will continue to operate and serve clients, led by their long-standing and independent management teams," he added.
SVB Financial said it had $3.3 billion in unsecured debt and $3.7 billion in equity that could be wiped out in bankruptcy.
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