SVB Financial applied for creditor protection
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SVB Financial Group, which previously included Silicon Valley Bank (SVB), filed to the Bankruptcy Court for the Southern District of New York, an application for protection pursuant to Art. 11 of the US bankruptcy law. This procedure provides for the possibility of reorganizing the company in terms of protection from creditors.
SVB filed for bankruptcy last Friday. The collapse of a bank with assets of $212 billion, which has been working with American startups for several decades, was the largest since the financial crisis of 2008. He brought along closing another bank a fall shares of many banks and technology companies and the general confusion of the financial industry. SVB shareholders already filed a lawsuit about fraud to SVB Financial.
In a statement, SVB Financial emphasizes that it is no longer affiliated with SVB itself, which is now under the control of the Federal Deposit Insurance Corporation. She sells some of the bank’s assets to pay back the money to its depositors. SVB Financial retained some of the group’s other assets. Some of them are not included in the list of assets for bankruptcy protection, and their company puts up for auction – including the investment company SVB Capital and the brokerage firm SVB Securities. In a statement, SVB Financial said it has $2.2 billion in liquidity with $3.3 billion in debt and $3.7 billion in shares.
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