SVB Financial Group, the parent company of Silicon Valley Bank, has filed for court-supervised reorganization under Chapter 11 bankruptcy to seek buyers for its assets.
The company filed a voluntary petition in the United States Bankruptcy Court for the Southern District of New York. The move comes after the FDIC closed and took over Silicon Valley Bank a week ago, making it the largest bank failure since Washington Mutual in 2008.
SVB Securities and SVB Capital's funds and general partner entities are not included in the Chapter 11 filing and will continue to operate, the company said.
Crucially, SVB Financial Group is no longer affiliated with Silicon Valley Bank NA or the bank's private banking and wealth management business, SVB Private, the company said.
The company believes it has about $2.2 billion of liquidity, and its funded debt is approximately $3.3 billion in aggregate principal amount of unsecured notes.
SVB Financial Group is evaluating strategic alternatives as part of the bankruptcy process, and the company says it has attracted significant interest. Any sale would require court approval.
"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. "SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams."
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