SVB Financial Group has filed for Chapter 11 Protection due to the impact of the collapse of Silicon Valley Bank.
According to a recent announcement, the parent of Silicon Valley Bank is seeking Chapter 11 bankruptcy protection.
The Silicon Valley Bank is not part of the filing because it is under the control of the Federal Deposits Insurance Corporation. But the group is looking for new owners for its other businesses after the court’s approval.
SVB Financial Group has $2.2 Billion in Liquidity
Along with the bank, SVB Capital and SVB Securities are also not included in the Chapter 11 filing, and they continue to operate as usual. The company announced that it has $2.2 billion in liquidity, whereas it had $209 billion worth of assets last year.
A five-member restructuring committee will help the business undergo the Chapter 11 proceedings.
William Kosturos, the Chief Restructuring Officer, says, “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. [The companies] continue to operate and serve clients, led by their longstanding and independent leadership teams.”
HSBC bank acquired Silicon Valley Bank’s U.K. division Monday for £1 ($1.21). On March 10, regulators seized SVB, which has been described as the largest banking failure after 2008.
Following multiple bank failures, the Federal Reserve injected $300 billion into the U.S. banking system last week.
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Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.