SVB Financial Group seeks bankruptcy protection for reorganisation
SVB Financial Group on Friday said that it has filed for a court-supervised reorganization for bankruptcy protection under the United States Bankruptcy Code, to seek buyers for its assets. The move comes days after SVB Financial Group’s former unit Silicon Valley Bank was taken over by U.S. regulators.
The plan to seek bankruptcy protection comes after the company said on March 13 that it was planning to explore strategic alternatives for its businesses, including the holding company, SVB Capital and SVB Securities. California banking regulators have closed SVB and appointed the Federal Deposit Insurance Corporation as receiver for disposition of its assets.
The collapse of SVB has crippled banks stocks and triggered concerns of a contagion throughout global markets.