2023-03-17
After Silicon Valley bank (SVB) announced it was closed
due to government orders. SVB Financial Group (SIVB), the parent company of
Silicon Valley Bank, has filed for bankruptcy pursuant to chapter 11 of the Bankruptcy Law to the U.S. Bankruptcy Court for the
Southern District of New York.
"The Chapter 11 process will allow SVB Financial
Group to preserve value as it evaluates strategic alternatives for its prized
businesses and assets, especially SVB Capital and SVB Securities," said
William Kosturos, Chief Restructuring Officer for SVB Financial Group. "SVB
Capital and SVB Securities continue to operate and serve clients, led by their
longstanding and independent leadership teams."
"SVB Financial Group will continue to work cooperatively with Silicon Valley Bridge Bank," Mr. Kosturos continued. "We are committed to finding practical solutions to maximize the recoverable value for stakeholders of both entities."
Related to this: SVB Financial Group Commences Chapter11 Proceeding to Preserve Value
The company said it had filed a reorganization with
the Bankruptcy Court in South New York to preserve its value. SVB Financial
said it is no longer affiliated with Silicon Valley Bank.
Earlier, reports revealed that on
March 13, 2023, HSBC had agreed to acquire a branch of Silicon Valley Bank in
the UK for £1, which was under the procurement of the UK government and the
Bank of England after a major US branch of Silicon Valley Bank was hit by
liquidity problems.
