(Tiper Stock Exchange) – SVB Financial Group has started the procedures for a court-supervised reorganization pursuant to the Chapter 11 in the United States, with the aim of preserving its value. The announcement comes days after its former Silicon Valley Bank unit was taken over by US regulators.
Regulators have Silicon Valley Bank closed last Friday and named the Federal Deposit Insurance Corporation (FDIC) as bankruptcy trustee, making it the largest bankruptcy since the 2008 financial crisis.
SVB Financial Group believes it has approximately USD 2.2 billion in cash. In addition to cash and its holdings in SVB Capital and SVB Securities, it holds other investment securities accounts and other assets for which it is also exploring strategic alternatives.
“The Chapter 11 process will enable SVB Financial Group to preserve value as it evaluates strategic alternatives for its businesses and valuable assets, especially SVB Capital and SVB Securities,” said William Kosturos, Chief Restructuring Officer of SVB Financial Group. SVB Capital and SVB Securities continue to operate and serve customers, led by their longstanding and independent leadership teams.”
SVB Financial Group will continue to work with Silicon Valley Bridge Bank – continued Kosturos – We are committed to finding practical solutions to maximize the recoverable value for the stakeholders of both entities”.