New York () — SVB Financial Group, the company that owns the failed Silicon Valley Bank that the US government took over last week, has filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Law.
Silicon Valley Bank was not included in the presentation in New York on Friday. Also not included in the Chapter 11 process are venture capital firm SVB Capital and brokerage firm SVB Securities, which will remain in operation.
Trading in SVB Financial Group shares has been halted since Thursday and a bankruptcy was largely expected.
“The Chapter 11 process will allow SVB Financial Group to preserve value while evaluating strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” William Kosturos, head of restructuring at SVB Financial Group, said in a statement.
“SVB Capital and SVB Securities continue to operate and serve clients, led by their long-standing and independent leadership teams,” it added.
SVB Financial said it had $3.3 billion in unsecured debt and $3.7 billion in shares that could disappear in bankruptcy.
