Chapter 11, also referred to as ‘reorganisation chapter’, normally permits a debtor to stay in possession and have the powers and duties of a trustees, the US Courts defined. The enterprise might proceed to function and, with court docket approval, borrow cash.
The reorganisation plans might should be voted on by the collectors affected and, if accredited, they might be confirmed by the court docket, topic to sure authorized necessities.
SVB Monetary Group stated SVB Securities and SVB Capital’s funds and common companion entities haven’t been included within the chapter filings and the companies will proceed to function within the “strange course” because the dad or mum firm continues its exploration of strategic options for the 2.
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SVB Monetary Group added it’s “not affiliated” with Silicon Valley Financial institution or the financial institution’s non-public baking and wealth administration enterprise, SVB Personal.
Its successor, Silicon Valley Bridge Financial institution, is at the moment working beneath the jurisdiction of the Federal Deposit Insurance coverage Company and, as such, is just not included within the Chapter 11 filings.
SVB Monetary believes it has round $2.2bn of liquidity in addition to funded debt of roughly $3.3bn in combination principal quantity of unsecured notes, which, it added, “are solely recourse to SVB Monetary Group and haven’t any declare in opposition to SVB Capital or SVB Securities”.
The group additionally has $3.7bn of most popular fairness excellent.
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SVB Monetary Group chief restructuring officer William Kosturos stated the chapter proceedings will permit the corporate to “protect worth because it evaluates strategic options for its companies and property”.
“SVB Monetary Group will proceed to work cooperatively with Silicon Valley Bridge Financial institution,” he added. “We’re dedicated to discovering sensible options to maximise the recoverable worth for stakeholders of each entities.”