2 years ago
SVB Financial Group, the genitor institution of Silicon Valley Bank, has filed for bankruptcy protection, according to a press release from the institution connected March 17.
SVB files for reorganization
The announcement indicates that SVB Financial Group has voluntarily filed for a court-organized reorganization nether Chapter 11 of the U.S. Bankruptcy Code.
The filing has been submitted successful the Southern District of New York.
SVB Financial Group said that the ineligible process volition let it to research strategical alternatives arsenic determined by a board-appointed restructuring squad made up of 5 members. It noted that its strategical alternatives process is already successful advancement and added that immoderate merchantability that is arranged volition request to beryllium approved successful tribunal earlier it is executed.
The bankruptcy lawsuit aims to sphere institution value. The institution believes it has $2.2 cardinal of liquidity, $3.3. cardinal of indebtedness successful aggregate main magnitude of unsecured notes, and $3.7 cardinal of outstanding preferred equity. Joele Frank, a institution known for its engagement successful shareholder activism claims, is progressive successful the case.
Though Silicon Valley Bank has failed, SVB’s different services — SVB Capital and SVB Securities — volition proceed to supply services. SVB Financial Group is nary longer associated with the failed Silicon Valley Bank, according to the property release.
Customers volition person funds elsewhere
Silicon Valley Bank halted operations connected March 10 arsenic U.S. regulators closed the slope and took power of lawsuit assets. The illness occurred soon aft the institution announced plans to implicit $2 cardinal of funds, starring to a play slope run. Circle and BlockFi were among the cryptocurrency companies affected by the bank’s failure.
While bankruptcy extortion volition assistance the institution proceed mean operations and perchance pb to a recovery, customers volition regain entree to their funds elsewhere.
The Federal Deposit Insurance Corporation (FDIC) volition supply customers volition the insured information of their funds. Meanwhile, an emergency plan from the Biden medication and U.S. Treasury volition supply customers with each different eligible funds.
The station Silicon Valley Bank genitor steadfast files for bankruptcy protection appeared archetypal connected CryptoSlate.
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