SVB Financial Group Files for Chapter 11 Bankruptcy with Roughly $2.2B of Liquidity
SVB Financial Group, the parent company of Silicon Valley Bank, has filed for Chapter 11 bankruptcy in New York, listing nearly $10 billion each in assets and liabilities, and will seek a court-supervised reorganization.
The company said the filing does not include its investment banking and lending arms, SVB Capital or SVB Securities. SVB Financial intends to use the process to evaluate strategic alternatives for these units and other assets and investments.
SVB Financial said it had $2.2 billion of liquidity as well as $3.3 billion and $3.7 billion in bond debt and preferred equity outstanding, respectively.
“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” said William Kosturos, Chief Restructuring Officer for SVB Financial Group.
California banking regulators closed Silicon Valley Bank last Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets.
SVB is the largest bank to fail in more than a decade, holding approximately $209 billion in total assets as of the end of last year. It is the second largest bank to come under FDIC control, following only the collapse of Washington Mutual Inc. in 2008.