{"id":2475,"date":"2023-03-17T10:02:37","date_gmt":"2023-03-17T15:02:37","guid":{"rendered":"https:\/\/embarrdowns.com\/svb-financial-group-files-for-chapter-11-bankruptcy-protection\/"},"modified":"2023-03-17T10:02:38","modified_gmt":"2023-03-17T15:02:38","slug":"svb-financial-group-files-for-chapter-11-bankruptcy-protection","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/svb-financial-group-files-for-chapter-11-bankruptcy-protection\/","title":{"rendered":"SVB Financial Group Files for Chapter 11 Bankruptcy Protection"},"content":{"rendered":"

SVB Financial Group (SVB) (Nasdaq: SIVB) has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, the largest bankruptcy filing stemming from a bank failure since Washington Mutual Inc. in 2008.[0]<\/a><\/sup><\/p>\n

The company is no longer affiliated with Silicon Valley Bank, which was seized by the Federal Deposit Insurance Corp.[1]<\/a><\/sup> It was the second biggest bank failure in U.S. history.[2]<\/a><\/sup> SVB Financial Group is the holding company for all business units and groups.[3]<\/a><\/sup><\/p>\n

SVB Financial Group said in a statement that the Chapter 11 process will allow them to preserve value as they evaluate strategic alternatives for their prized businesses and assets, especially SVB Capital and SVB Securities, which continue to operate and serve clients under their independent leadership teams.[4]<\/a><\/sup><\/p>\n

William Kosturos, Chief Restructuring Officer for SVB Financial Group, said in a statement: \u201cWe are committed to finding practical solutions to maximize the recoverable value for stakeholders of both entities.\u201d[2]<\/a><\/sup><\/p>\n

The company also announced that it intends to offer $1.25 billion of common stock and $500 million of depositary shares in separate underwritten registered public offerings.[5]<\/a><\/sup> It also entered into a subscription agreement with General Atlantic to purchase $500 million of common stock at the public offering price in the offering of common stock.[6]<\/a><\/sup> SVB Financial Group intends to use the net proceeds from the offerings for general corporate purposes.[5]<\/a><\/sup><\/p>\n

SVB Financial Group is also exploring strategic alternatives for its SVB Capital and SVB Securities and has already attracted significant interest.[3]<\/a><\/sup> The strategic alternatives process is being led by a five-member restructuring committee appointed by the SVB Financial Group Board of Directors and is being assisted by Centerview Partners LLC.[7]<\/a><\/sup><\/p>\n

The company also completed the sale of substantially all of its available for sale securities portfolio, which resulted in an after tax loss of approximately $1.8 billion in the first quarter of 2023.[8]<\/a><\/sup><\/p>\n

SVB Financial Group is no longer affiliated with Silicon Valley Bank, SVB Private, or Silicon Valley Bridge Bank, which is being run under the jurisdiction of the FDIC and is not included in the Chapter 11 filing.[1]<\/a><\/sup> The company is now focused on preserving value as it evaluates strategic alternatives for its prized businesses and assets.<\/p>\n

0. <\/span>“SVB Financial Files for Chapter 11 Bankruptcy Protection” The Wall Street Journal, 17 Mar. 2023, https:\/\/www.wsj.com\/articles\/silicon-valley-banks-failure-tips-parent-company-into-chapter-11-3553fd32<\/a><\/a><\/p>\n

1. <\/span>“SVB Financial, former parent of Silicon Valley Bank, files for bankruptcy” CBS News, 17 Mar. 2023, https:\/\/www.cbsnews.com\/news\/svb-financial-files-for-bankruptcy<\/a><\/a><\/p>\n

2. <\/span>“SVB parent company files for bankruptcy after bank collapse” The Hill, 17 Mar. 2023, https:\/\/thehill.com\/business\/economy\/3905000-svb-parent-company-files-for-bankruptcy-after-bank-collapse\/<\/a><\/a><\/p>\n

3. <\/span>“SVB Financial files for Chapter 11 bankruptcy protection” Axios, 17 Mar. 2023, https:\/\/www.axios.com\/2023\/03\/17\/sbv-chapter-11<\/a><\/a><\/p>\n

4. <\/span>“Silicon Valley Bank parent company files for bankruptcy” The Washington Post, 17 Mar. 2023, https:\/\/www.washingtonpost.com\/business\/2023\/03\/17\/silicon-valley-bank-economy<\/a><\/a><\/p>\n

5. <\/span>“SVB Financial Group Announces Proposed Offerings of Common Stock and Mandatory Convertible Preferred Stock” PR Newswire, 8 Mar. 2023, https:\/\/www.prnewswire.com\/news-releases\/svb-financial-group-announces-proposed-offerings-of-common-stock-and-mandatory-convertible-preferred-stock-301766247.html<\/a><\/a><\/p>\n

6. <\/span>“SVB collapse: SVB Financial Group files for Chapter 11 bankruptcy” Washington Examiner, 17 Mar. 2023, https:\/\/www.washingtonexaminer.com\/policy\/economy\/svb-collapse-svb-financial-group-files-for-chapter-11-bankruptcy<\/a><\/a><\/p>\n

7. <\/span>“SVB Financial Group Commences Chapter 11 Proceeding to Preserve Value” PR Newswire, 17 Mar. 2023, https:\/\/www.prnewswire.com\/news-releases\/svb-financial-group-commences-chapter-11-proceeding-to-preserve-value-301774997.html<\/a><\/a><\/p>\n

8. <\/span>“SVB falls 5% after the bell on $1.25B stock offering, $500M depositary share offering” Seeking Alpha, 8 Mar. 2023, https:\/\/seekingalpha.com\/news\/3945644-svb-falls-5-after-the-bell-on-125b-stock-offering-500m-depositary-share-offering<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SVB Financial Group (SVB) (Nasdaq: SIVB) has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, the largest bankruptcy filing stemming from a bank failure since Washington Mutual Inc. in 2008.[0]<\/a><\/sup><\/p>\n

The company is no longer affiliated with Silicon Valley Bank, which was seized by the Federal Deposit Insurance Corp.[1]<\/a><\/sup> It was the second biggest bank failure in U.S. history.[2]<\/a><\/sup> SVB Financial Group is the holding company for all business units and groups.[3]<\/a><\/sup><\/p>\n

SVB Financial Group said in a statement that the Chapter 11 process will allow them to preserve value as they evaluate strategic alternatives for their prized businesses and assets, especially SVB Capital and SVB Securities, which continue to operate and serve clients under their independent leadership teams.[4]<\/a><\/sup><\/p>\n

William Kosturos, Chief Restructuring Officer for SVB Financial Group, said in a statement: \u201cWe are committed to finding practical solutions to maximize the recoverable value for stakeholders of both entities.\u201d[2]<\/a><\/sup><\/p>\n

The company also announced that it intends to offer $1.25 billion of common stock and $500 million of depositary shares in separate underwritten registered public offerings.[5]<\/a><\/sup> It also entered into a subscription agreement with General Atlantic to purchase $500 million of common stock at the public offering price in the offering of common stock.[6]<\/a><\/sup> SVB Financial Group intends to use the net proceeds from the offerings for general corporate purposes.[5]<\/a><\/sup><\/p>\n

SVB Financial Group is also exploring strategic alternatives for its SVB Capital and SVB Securities and has already attracted significant interest.[3]<\/a><\/sup> The strategic alternatives process is being led by a five-member restructuring committee appointed by the SVB Financial Group Board of Directors and is being assisted by Centerview Partners LLC.[7]<\/a><\/sup><\/p>\n

The company also completed the sale of substantially all of its available for sale securities portfolio, which resulted in an after tax loss of approximately $1.8 billion in the first quarter of 2023.[8]<\/a><\/sup><\/p>\n

SVB Financial Group is no longer affiliated with Silicon Valley Bank, SVB Private, or Silicon Valley Bridge Bank, which is being run under the jurisdiction of the FDIC and is not included in the Chapter 11 filing.[1]<\/a><\/sup> The company is now focused on preserving value as it evaluates strategic alternatives for its prized businesses and assets.<\/p>\n

0. <\/span>“SVB Financial Files for Chapter 11 Bankruptcy Protection” The Wall Street Journal, 17 Mar. 2023, https:\/\/www.wsj.com\/articles\/silicon-valley-banks-failure-tips-parent-company-into-chapter-11-3553fd32<\/a><\/a><\/p>\n

1. <\/span>“SVB Financial, former parent of Silicon Valley Bank, files for bankruptcy” CBS News, 17 Mar. 2023, https:\/\/www.cbsnews.com\/news\/svb-financial-files-for-bankruptcy<\/a><\/a><\/p>\n

2. <\/span>“SVB parent company files for bankruptcy after bank collapse” The Hill, 17 Mar. 2023, https:\/\/thehill.com\/business\/economy\/3905000-svb-parent-company-files-for-bankruptcy-after-bank-collapse\/<\/a><\/a><\/p>\n

3. <\/span>“SVB Financial files for Chapter 11 bankruptcy protection” Axios, 17 Mar. 2023, https:\/\/www.axios.com\/2023\/03\/17\/sbv-chapter-11<\/a><\/a><\/p>\n

4. <\/span>“Silicon Valley Bank parent company files for bankruptcy” The Washington Post, 17 Mar. 2023, https:\/\/www.washingtonpost.com\/business\/2023\/03\/17\/silicon-valley-bank-economy<\/a><\/a><\/p>\n

5. <\/span>“SVB Financial Group Announces Proposed Offerings of Common Stock and Mandatory Convertible Preferred Stock” PR Newswire, 8 Mar. 2023, https:\/\/www.prnewswire.com\/news-releases\/svb-financial-group-announces-proposed-offerings-of-common-stock-and-mandatory-convertible-preferred-stock-301766247.html<\/a><\/a><\/p>\n

6. <\/span>“SVB collapse: SVB Financial Group files for Chapter 11 bankruptcy” Washington Examiner, 17 Mar. 2023, https:\/\/www.washingtonexaminer.com\/policy\/economy\/svb-collapse-svb-financial-group-files-for-chapter-11-bankruptcy<\/a><\/a><\/p>\n

7. <\/span>“SVB Financial Group Commences Chapter 11 Proceeding to Preserve Value” PR Newswire, 17 Mar. 2023, https:\/\/www.prnewswire.com\/news-releases\/svb-financial-group-commences-chapter-11-proceeding-to-preserve-value-301774997.html<\/a><\/a><\/p>\n

8. <\/span>“SVB falls 5% after the bell on $1.25B stock offering, $500M depositary share offering” Seeking Alpha, 8 Mar. 2023, https:\/\/seekingalpha.com\/news\/3945644-svb-falls-5-after-the-bell-on-125b-stock-offering-500m-depositary-share-offering<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2474,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2475"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2475"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2475\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2474"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}