Less than two weeks ago, the parent company's $200 billion bank was operating as usual. Now it's trying to salvage remaining assets.
Just days after its former subsidiary Silicon Valley Bank was deemed a failure and taken over by regulators, SVB Financial filed for bankruptcy in New York on Friday—an attempt to save assets and businesses it still controls, including its investment bank and venture capital arm.gettyOn Friday morning, SVB Financial announced it filed a voluntary petition for a court-supervised reorganization in the U.S. Bankruptcy Court for the Southern District of New York.
The company, which is no longer affiliated with Silicon Valley Bank or its government-controlled successor Silicon Valley Bridge Bank, said it has about $2.2 billion of liquidity and $3.3 billion in funded debt. SVB's broker-dealer business, SVB Securities, and funds under its venture capital business, SVB Capital, are not included in the filing.
In a statement, SVB Financial chief restructuring officer William Kosturos said the Chapter 11 process will allow the holding company to"preserve value" as it evaluates options for its"prized businesses and assets, especially SVB Capital and SVB Securities."
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