SVB Financial files for bankruptcy protection
SVB Financial Group said on Friday it filed for a court-supervised reorganisation under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by US regulators.
The plan to seek bankruptcy protection comes after the company said on March 13 it was planning to explore strategic alternatives for its businesses, including the holding company, SVB Capital and SVB Securities.
SVB Securities and SVB Capital’s funds and general partner entities are not included in the Chapter 11 filing, the company said on Friday.
Reuters reported on Wednesday that the parent company was exploring seeking bankruptcy protection for selling assets.
California banking regulators closed SVB on Friday and appointed the Federal Deposit Insurance Corporation as receiver for later disposition of its assets.
The collapse of SVB, the biggest bank to fail since Washington Mutual went bust during the financial crisis of 2008, has crippled banks stocks and triggered concerns of a contagion throughout global markets.