SVB Financial Group has filed for Chapter 11 protection due to the effects of the collapse of Silicon Valley Bank.
According to a recent announcement, the guardians of Silicon Valley Bank are seeking Chapter 11 bankruptcy protection.
Silicon Valley Bank is not part of the filing because it is under the control of the Federal Deposit Insurance Corporation. But the group is looking for new owners for its other businesses after court approval.
SVB Financial Group has $2.2 billion in liquidity
Along with the bank, SVB Capital and SVB Securities are also not involved in the Chapter 11 filing, and they continue to operate as usual. The company announced that it had $2.2 billion in liquidity, compared to $209 billion in assets last year.
A five-member reorganization committee will help the business go through Chapter 11 proceedings.
William Kosturos, Chief Restructuring Officer, says, “The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic options for its prized businesses and assets, particularly SVB Capital and SVB Securities. [The companies] Continue to operate and serve customers under the leadership of our long-standing and independent leadership teams.
HSBC Bank on Monday acquired the UK division of Silicon Valley Bank for £1 ($1.21). On 10 March, regulators seized SVB in what has been described as the biggest banking failure since 2008.
After several bank failures, the Federal Reserve last week injected $300 billion into the US banking system.
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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.