Home Bitcoin Silicon Valley Bank (SVB) Files For Bankruptcy in New York

Silicon Valley Bank (SVB) Files For Bankruptcy in New York

  • It will be possible for the bank to keep most of its assets during the bankruptcy process.
  • SVB voluntarily filed for Chapter 11 bankruptcy in the United States Bankruptcy Court.

Silicon Valley Bank (SVB) has declared its intention to file for bankruptcy in order to sell its assets. In an effort to protect its assets, SVB voluntarily filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York. According to the paperwork, the procedure does not include SVB Securities, the funds managed by SVB Capital, or the general partner organizations of SVB Capital.

On Monday, March 13, the bank disclosed that it was considering potential exit strategies, which led directly to the filing for bankruptcy protection. This week, California authorities shut down the bank and named the Federal Deposit Insurance Corporation (FDIC) as a receiver. As of now, the FDIC may sell off their possessions any way they see fit.

Time For Strategic Alternatives

Around $2.2 billion is available to SVB right now. The bank also has cash reserves generated by its ownership of SVB Capital, SVB Securities, and SVB Financial Group. The collapsed bank also had other important assets in securities accounts.

William Kosturos, SVB Financial Group’s chief restructuring officer, stated in the filing:

“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. SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams.”

It will be possible for the bank to keep most of its assets during the bankruptcy process, giving it time to consider its alternatives. The bank will also submit further paperwork to the bankruptcy court in the coming days.

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