SVB Financial Group, the company that owned the failed Silicon Valley Bank until the US government took it over last week, has filed for Chapter 11 bankruptcy protection.
Silicon Valley Bank was not included in the bankruptcy filing in New York on Friday. Also not included in the Chapter 11 process are venture capital company SVB Capital and broker-dealer business SVB Securities, which will remain operational.
Trading of the company’s stock (SIVB) has been halted since Thursday, and a bankruptcy was largely expected.
“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” said William Kosturos, chief restructuring officer for SVB Financial Group, in a statement.
“SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams,” he added.
SVB Financial said it had $3.3 billion in unsecured debt and $3.7 billion in stock that could get wiped out in the bankruptcy.