Transition Follows Decision by SVB Financial Group that Retaining Ownership of SVB Capital Represents Best Path Forward for Business
Co-Founder Aaron Gershenberg Returning to Join Veteran Managing.
NEW YORK (Reuters) -The bankrupt parent company of Silicon Valley Bank plans to turn over its remaining venture capital business to a new, creditor-backed company while it continues to fight U.S. regulators' seizure of nearly $2 billion in cash, according to court documents filed on Tuesday. SVB Financial Group reached a restructuring agreement with key creditors and has the support of a coalition of banks and investment funds that collectively hold more than $2.3 billion in SVB Financial debt and preferred stock investments, the documents filed in Manhattan bankruptcy court showed. The company filed for bankruptcy in March after Silicon Valley Bank collapsed, becoming the third-largest bank failure in U.S. history.
SVB Financial has officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. This comes one week after trading was stopped for the company and regulators took control of the holding company for Silicon Valley Bank and other subsidiaries.As a result, SVB Financial will be able …
The US Federal Reserve has proposed a regulatory overhaul in which the nation s largest banks would be forced to hold more capital in hopes future meltdowns in the sector can be prevented.