- SVB Capital and SVB Securities are not included in the bankruptcy filing
- SVB Financial has $2.2b of liquidity, funded debt of $3.3b, and $3.7b of outstanding equity
SVB Financial Group announced it has filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court for the Southern District of New York, Bankless Times learned from a press release. The voluntary petition for a judiciary-supervised reorganization is aimed at preserving its assets and investments.
SVB Capital and SVB Securities not included in filing
SVB Capital and SVB Securities are not included in the bankruptcy filing and will continue to operate in their ordinary course.
SVB Capital funds will retain access to investor commitments, subscription credit facilities, and other sources of financing.
SVB Securities is a regulated broker-dealer with separate capital, staff, and management.
SVB Financial Group has no affiliation with the failed Silicon Valley Bank now. SVB successor Silicon Valley Bridge Bank, N.A. is not included in the Chapter 11 filing either. It operates within the jurisdiction of the FDIC.
SVB has $2.2B of liquidity, $3.3B in funded debt
SVB Financial reported it had approximately $2.2 billion of liquidity and funded debt of approximately $3.3 billion. The debt is made up of unsecured notes. The group’s outstanding equity amounts to around $3.7 billion.
The group also has cash, interests in SVB Capital and SVB Securities, and other assets, for which it’s seeking alternatives under the insolvency procedure. SVB Financial Group has no claim against SVB Capital or SVB Securities.
Centerview is assisting restructuring committee
SVB Financial Group aims to take advantage of the judicial process to assess strategic alternatives for its investments and assets, including SVB Capital and SVB Securities. A five-member restructuring committee assisted by Centerview Partners LLC is leading the process.
Sales transactions will be carried out in line with Chapter 11 proceedings and subject to court approval. William Kosturos, Chief Restructuring Officer for the group, commented:
The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets. SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams.
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