{"id":618853,"date":"2023-03-17T09:49:04","date_gmt":"2023-03-17T14:49:04","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/17\/svb-financial-files-for-ch-11-bankruptcy-protection-says-it-has-2-2b-in-liquidity\/"},"modified":"2023-03-17T09:49:04","modified_gmt":"2023-03-17T14:49:04","slug":"svb-financial-files-for-ch-11-bankruptcy-protection-says-it-has-2-2b-in-liquidity","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/17\/svb-financial-files-for-ch-11-bankruptcy-protection-says-it-has-2-2b-in-liquidity\/","title":{"rendered":"SVB Financial files for Ch. 11 bankruptcy protection, says it has $2.2B in liquidity"},"content":{"rendered":"
\n

One week after trading was halted<\/a> for SVB Financial and regulators took control<\/a> of the holding company for Silicon Valley Bank and other subsidiaries, SVB Financial has taken the next inevitable step: today it announced<\/a> that it has formally filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.<\/span> This will mean that SVB Financial can apply, and plans to apply, to the courts to resume activities while finding buyers for its assets, which include going ahead with its plans to sell off SVB Securities and SVB Capital, and more.<\/p>\n

As part of that process, SVB Financial also taking the wraps over some of the financial state of the holding company, which had a market cap of about $12 billion before shares plunged last Friday as depositors made a run on the bank. (Trading was halted at the point that the market cap was slashed to about half of that $12 billion.)<\/p>\n

It said that the company \u201cbelieves it has approximately $2.2 billion<\/span> of liquidity.\u201d Is also noted that\u00a0funded debt is approximately $3.3 billion<\/span> \u201cin aggregate principal amount of unsecured notes,\u201d which are only recourse to SVB Financial Group \u201cand have no claim against SVB Capital or SVB Securities,\u201d which are legally separate entities. SVB Financial Group \u201calso has $3.7 billion<\/span> of preferred equity outstanding,\u201d it said.<\/p>\n

\u201cSVB Financial Group intends to use the court-supervised process to evaluate strategic alternatives for SVB Capital, SVB Securities and the Company\u2019s other assets and investments,\u201d it noted in a statement. That effort is being run by a five-member restructuring committee, with Centerview Partners LLC assisting. Any sale process will be conducted through the Chapter 11 proceeding and be subject to court approval, it added.<\/p>\n

It also provided an update on the sale of assets that formerly sat within the group.<\/p>\n

While there have been a lot of hiccups<\/a> in the search for a buyer for the banking division of SVB \u2014 a process that is being overseen by regulators \u2014 in contrast, the group is seeing \u201csignificant interest\u201d for SVB Securities and SVB Capital. These two are technically different legal entities and are therefore not included in the Ch. 11 filing. They are continuing to operate while also being shopped around separately to potential buyers<\/a>, a process that started earlier this week.<\/p>\n

\u201cThe 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,\u201d said William Kosturos<\/span>, Chief Restructuring Officer for SVB Financial Group, in a statement. \u201cSVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams.\u201d<\/p>\n

As we\u2019ve previously reported, SVB Capital has about $9.5 billion in assets under management, with investments both in a number of major VCs and funds, as well as startups directly. SVB Securities has been around in one form or another since 1999. Based out of Boston, it\u2019s brokered and provided services to startups across nearly 700 deals.<\/p>\n

SVB Financial also noted that addition to cash and interests in SVB Capital and SVB Securities, \u201cthe Financial Group has other valuable investment securities accounts and other assets for which it is also exploring strategic alternatives.\u201d<\/p>\n

The key thing with Chapter 11 is that it will mean that SVB Financial Group can resume operations outside of the FDIC\u2019s control while it works through next steps. To that end, the holding company said it plans to file \u201ccustomary first day motions with the Bankruptcy Court that, among other things, seek authorization to continue the operations of SVB Financial Group in the ordinary course of business as soon as a hearing can be scheduled. Additional documents relating to the Bankruptcy Court proceeding will be filed in the coming days.\u201d<\/p>\n

\"Read<\/a><\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Ingrid Lunden<\/p>\n","protected":false},"excerpt":{"rendered":"

One week after trading was halted for SVB Financial and regulators took control of the holding company for Silicon Valley Bank and other subsidiaries, SVB Financial has taken the next inevitable step: today it announced that it has formally filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of<\/p>\n","protected":false},"author":1,"featured_media":618854,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1474,534,46],"tags":[],"class_list":{"0":"post-618853","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-files","8":"category-financial","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/618853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=618853"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/618853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/618854"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=618853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=618853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=618853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}