• Silicon Valley Bank parent company, SVB Financial Group, has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
• The filing will allow the company to explore strategic alternatives as determined by a board-appointed restructuring team.
• Customers will be able to receive funds from the Federal Deposit Insurance Corporation (FDIC) and an emergency plan from the Biden administration and U.S. Treasury.
Silicon Valley Bank Parent Firm Files for Bankruptcy Protection
SVB Financial Group, the parent company of Silicon Valley Bank, has voluntarily filed for a court-organized reorganization under Chapter 11 of the U.S. Bankruptcy Code, according to a press release from the company on March 17th. The filing was submitted in the Southern District of New York with Joele Frank—a firm known for its involvement in shareholder activism claims—involved in the case.
Strategic Alternatives Process In Progress
The bankruptcy case aims to preserve company value and any sale that is arranged must be approved in court before it is executed. SVB Financial Group believes it has $2.2 billion of liquidity, $3.3 billion of debt in aggregate principal amount of unsecured notes, and $3.7 billion of outstanding preferred equity to work with during this process and noted that its strategic alternatives process is already in progress prior to submitting its filing today.
Silicon Valley Bank Closure
Though Silicon Valley Bank has failed due to regulations taking control over customer assets last week, SVB’s other services—SVB Capital and SVB Securities—will continue to provide services while they are no longer associated with their former branch bank entity anymore since its closure on March 10th after announcing plans to over $2 billion of funds leading up to a weekend bank run which affected cryptocurrency companies such as Circle and BlockFi at the time as well..
Funds Accessible Elsewhere
Bankruptcy protection will help SVB Financial Group continue ordinary operations and potentially lead to a recovery but customers will instead be able regain access to their funds elsewhere where they can receive the insured portion from the Federal Deposit Insurance Corporation (FDIC) as well as an emergency plan from both President Biden’s Administration and United States Treasury Department .
In conclusion, though Silicon Valley Bank’s parent firm filed for bankruptcy protection today which allows them explore strategic alternatives while preserving their current values; customers can still access their funds through alternative sources such as FDIC or Biden Administration/U.S Treasury Emergency Plan specifically catered towards those affected by this collapse directly or indirectly caused by SVA Banks announcement prior regarding their over two billion dollar fund transfer issue leading up lastweek causing major panic amongst those involved ending ultimately ending with its closure soon after officially announced earlier this week marking official end between previously mentioned services no longer associated wwith now defunct branch entity formerly known as Silicon Valley BanK