The Inevitable End - SVB Financial Officially Files For Bankruptcy In New York

  • SVB Financial Group SIVB has filed a voluntary petition for a court-supervised reorganization under Chapter 11 in the United States Bankruptcy Court for the Southern District of New York to preserve value.
  • SVB Securities, SVB Capital's funds, and general partner entities are not included in the Chapter 11 filing. These businesses will continue to operate normally as SVB Financial Group proceeds with its previously announced exploration of strategic alternatives announced on Monday but did not disclose bankruptcy as one of the potential options.
    • SVB Capital, a venture capital and private credit fund platform, continues to operate in the ordinary course and serve its clients. 
    • SVB Securities, a regulated broker-dealer, is a separate legal entity from SVB Financial Group and is not included in the Chapter 11 filing. 
  • Related: Silicon Valley Bank Creditors Purchased Bonds At Distressed Levels Anticipating Potential Bankruptcy Sale.
  • The company says it has approximately $2.2 billion of liquidity. 
  • "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.
  • Photo by gguy on Shutterstock
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