SVB Financial Group Files For Bankruptcy, SVB Services to Continue

• SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection.
• The filing was submitted in the Southern District of New York and will allow them to explore strategic alternatives.
• Customers of the failed Silicon Valley Bank will receive their funds from FDIC and an emergency plan from the U.S Treasury.

Silicon Valley Bank Parent Files For Bankruptcy Protection

SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection in the Southern District of New York under Chapter 11 of the US Bankruptcy Code. This filing allows them to explore strategic alternatives as determined by a board-appointed restructuring team made up of five members. They have $2.2 billion of liquidity, $3.3 billion of debt in aggregate principal amount of unsecured notes, and $3.7 billion outstanding preferred equity at this time.

Customer Funds Will Be Covered

Though Silicon Valley Bank has failed, customers can still be assured that their funds will be covered through other means such as Federal Deposit Insurance Corporation (FDIC) or an emergency plan from Biden administration and US Treasury Department which will provide additional funds if needed to cover all customer deposits with Silicon Valley Bank up to $250,000 per account holder as determined by FDIC regulations.

Services Still Operational

SVB’s other services — SVB Capital and SVB Securities — are still operational despite the collapse and failure of Silicon Valley bank itself. Joele Frank is also involved in this case to help preserve company value during this transition period for SVB Financial Group.

Bank Run Preceded Collapse

The collapse occurred shortly after SVB announced plans to over $2 billion of funds which led to a weekend bank run where many customers withdrew their funds before it closed down its operations on March 10th due to US regulators taking control over customer assets at that time . Companies like Circle and BlockFi were among those affected by this closure as well but they too will receive coverage under FDIC insurance or emergency plans put forth by US Treasury Department if needed .

Exploring Strategic Alternatives

Any sale arranged during this strategic alternative process must be approved in court before it is executed so that way all parties involved are assured that there is no foul play happening behind closed doors when it comes to preserving company value during reorganization process set forth by Chapter 11 filing .