Breaking: SVB Financial Group files for Chapter 11 bankruptcy
SVB Financial Group, the former umbrella entity of Silicon Valley Bank, has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York to “preserve value.”
Troubled SVB Financial Group has filed a voluntary petition for a court-supervised reorganization under Chapter 11 in the United States Bankruptcy Court to preserve value.
Announcing the news on March 17, SVB said that SVB Securities and SVB Capital’s funds and general partner entities are not included in the bankruptcy proceedings. The entities will continue to operate in the ordinary manner while SVB Financial Group proceeds to explore strategic alternatives for its businesses.
SVB Financial Group also emphasized that the company is no longer affiliated with Silicon Valley Bank N.A., or the bank’s private banking and wealth management business, SVB Private. The bank’s successor, Silicon Valley Bridge Bank, N.A., is operating under the jurisdiction of the Federal Deposit Insurance Corporation (FDIC) and is not included in the Chapter 11 filing.
This is a developing story, and further information will be added as it becomes available.
