The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

SVB Financial files for bankruptcy protection

SVB Financial Group in Santa Clara, Calif., has filed for Chapter 11 bankruptcy protection a week after regulators seized its bank.

The company said in a press release that it is seeking court-supervised reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

SVB said it continues to explore strategic alternatives for units SVB Capital and SVB Securities.

SVB said it believes it has about $2.2 billion of liquidity. Its funded debt totals about $3.3 billion. The company also has $3.7 billion of preferred equity outstanding.

The process will allow SVB “to preserve value as it evaluates strategic alternatives for its prized businesses and assets,” William Kosturos, the company’s chief restructuring officer, said in the release.

“SVB Financial Group will continue to work cooperatively with Silicon Valley Bridge Bank,” Kosturos added. “We are committed to finding practical solutions to maximize the recoverable value for stakeholders of both entities.”

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