SVB Financial Group, the umbrella organization of Silicon Valley Bank, declared in a formal statement on Friday that it had petitioned for protection under Chapter 11 of the Bankruptcy Code.
The filing is a result of the Silicon Valley Bank going under last week, which is the second biggest bank failure in the United States. Before the Federal Deposit Insurance Corporation took control, the bank had to liquidate some of its assets, consisting of long-term government and corporate bonds, in order to return the depositors' money.
The bank in California was shut down by state regulators and the FDIC was appointed as the receiver.
The SVB Financial Group has chosen to go through the court-directed process to examine various options for SVB Capital, SVB Securities, and their other assets and investments. This process is being overseen by a five-member restructuring committee, appointed by the SVB Financial Group Board of Directors as previously mentioned, noted the release.
Ben Zeisloft was involved in the writing of this report.
This story is still in progress; please check back for more information.