SVB Financial Group Officially Files for Bankruptcy
SVB Financial (NASDAQ: SIVB), the parent company behind the infamous Silicon Valley Bank that failed last week and was subsequently handed over to the Federal Deposit Insurance Corporation, is officially filing for bankruptcy.
In a notice filed in the Southern District of New York, SVB Financial made a voluntary petition for a Chapter 11 bankruptcy, unveiling it has approximately $10 billion in assets and liabilities each, and about $2.2 billion worth of cash strapped to SVB Capital and SVB Securities.
The company did distinguish, however, that the bankruptcy filing doesn’t include the two aforementioned entities, as they will remain operational while “SVB Financial Group proceeds with its previously announced exploration of strategic alternatives for these valuable businesses.”
SVB Financial added that it has procured “significant interest” regarding the sale of its alternatives, and that funded debt amounts to approximately $3.3 billion in aggregate principal amount of unsecured notes. (The bankruptcy filing in its entirety can be found here.)
It’s noteworthy to mention that the collapse of Silicon Valley Bank marks the largest bank failure since the 2008 Financial Crisis, and is the second-biggest bank placed under management of the FDIC.
Information for this briefing was found via SVB Financial Group and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
